CRISC: Certified in Risk and Information Systems ControlDemo

By Isaca · Question Mode

QuestionQ1785

Risk Assessment

The annualized loss expectancy (ALE) risk-analysis method:

  • A uses qualitative risk rankings such as low, medium, and high
  • B can be used to determine the indirect business impact
  • C helps in calculating the expected cost of controls
  • D can be used in a cost-benefit analysis
Explanation

ALE estimates the expected monetary loss from a risk over a year. Comparing that expected loss, or the reduction in it after a safeguard is applied, with the safeguard’s cost supports a cost-benefit analysis.

Community Discussion

No comments yet. Be the first to start the discussion!