How can you calculate the Annualized Loss Expectancy (ALE) that may occur due to a threat?
A.
Single Loss Expectancy (SLE) X Annualized Rate of Occurrence (ARO)
B.
Single Loss Expectancy (SLE)/ Exposure Factor (EF)
C.
Asset Value X Exposure Factor (EF)
D.
Exposure Factor (EF)/Single Loss Expectancy (SLE)
Explanation:
The Annualized Loss Expectancy (ALE) that occurs due to a threat can be
calculated by multiplying the Single Loss Expectancy (SLE) with the Annualized Rate of
Occurrence (ARO). Annualized Loss Expectancy (ALE) = Single Loss Expectancy (SLE) X
Annualized Rate of Occurrence (ARO) Annualized Rate of Occurrence (ARO) is a number that
represents the estimated frequency in which a threat is expected to occur. It is calculated based
upon the probability of the event occurring and the number of employees that could make that
event occur. Single Loss Expectancy (SLE) is the value in dollars that is assigned to a single
event. SLE can be calculated by the following formula: SLE = Asset Value ($) X Exposure Factor
(EF) The Exposure Factor (EF) represents the % of assets loss caused by a threat. The EF is
required to calculate Single Loss Expectancy (SLE).