QuestionQ345

Risk Management and Security Frameworks

Which risk-management term represents the estimated frequency with which a threat is expected to occur?

  • A Single Loss Expectancy (SLE)
  • B Annualized Rate of Occurrence (ARO)
  • C Safeguard
  • D Exposure Factor (EF)
Explanation

Annualized Rate of Occurrence (ARO) expresses the expected frequency of a threat event over one year. It is used with Single Loss Expectancy (SLE) to calculate Annual Loss Expectancy (ALE): ALE = SLE × ARO.

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