To calculate the annualized loss expectancy (ALE), which formula is used to calculate the potential loss to an organization for a specific threat?
A.
SLE x ARO
B.
ALE x (ARO – SLE)
C.
ARO x ALE
D.
SLE plus the annual maintenance cost
Explanation:
The annual loss expectancy (ALE) = single loss expectancy (SLE) X
annualized rate of occurrence (ARO). The SLE is a calculation of the loss that could
be experience if an event occurs once.