How can you calculate the Annualized Loss Expectancy (ALE) that may occur due to 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:
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).