Which factor in FAIR analysis evaluates compensating controls?

In FAIR analysis, control effectiveness plays a crucial role in evaluating how well compensating controls are likely to mitigate risk. This factor assesses the ability of existing controls to reduce the likelihood of loss events or to lessen their impact if they do occur. Specifically, compensating controls are alternative measures implemented to address identified risks when primary controls are either absent or insufficient.

By measuring control effectiveness, an organization can gauge the reliability of these compensating measures in reducing potential losses. This evaluation helps in quantifying risk exposure more accurately and enables better decision-making regarding risk management strategies. Understanding control effectiveness is essential for organizations to prioritize their investments in security controls based on their actual efficacy in minimizing risks.