QuestionQ75

VerifiedGovernance, Risk, and Compliance (GRC)

You are computing Annualized Loss Expectancy (ALE) with the following formula: ALE = AV * EF * ARO.

What does AV (Asset Value) represent?

Explanation

Asset Value is the monetary value assigned to an asset, commonly accounting for its acquisition cost and associated ongoing and other relevant costs. In the ALE formula, Exposure Factor represents the proportion lost in an incident and Annualized Rate of Occurrence represents the expected yearly frequency.

Community Discussion

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