QuestionQ143

Risk Management

How do you calculate the Annualized Loss Expectancy (ALE) that could result from a threat?

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

Annualized Loss Expectancy equals Single Loss Expectancy multiplied by the Annualized Rate of Occurrence: ALE = SLE × ARO.

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