Which of the following terms related to risk management represents the estimated frequency at which a threat is expected to occur?
A.
Safeguard
B.
Exposure or (EF)
C.
Annualized Rate of Occurrence (ARO)
D.
Single Loss Expectancy (SLE)
Explanation:
The Annualized Rate of Occurrence (ARO) is a number that represents the estimated frequency at 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.
Answer option B is incorrect. The Exposure or (EF) represents the % of assets loss caused by a threat. The EF is required to calculate the Single Loss Expectancy (SLE).
Answer option D is incorrect. The Single Loss Expectancy (SLE) is the value in dollars that is assigned to a single event.
SLE = Asset Value ($) X Exposure or (EF)
Answer option A is incorrect. Safeguard acts as a countermeasure for reducing the risk associated with a specific threat or a group of threats.
Reference: "http.//en.wikipedia.org/wiki/Risk_management"
I choose C