The ____ is the expected monetary loss that can be expected for an asset because of a risk over a one-year period.
A) Exposure Factor (EF)
B) Annualized Rate of Occurrence (ARO)
C) Annualized Loss Expectancy (ALE)
D) Single Loss Expectancy (SLE)

Question

Quizplus · Accepted Answer

Annualized Loss Expectancy (ALE) is the expected monetary loss that can be expected for an asset over a one-year period. It is calculated by multiplying the Single Loss Expectancy (SLE) with the Annualized Rate of Occurrence (ARO). The Exposure Factor (EF) is the percentage of asset value that is actually exposed to a particular risk.

The ____ Is the Expected Monetary Loss That Can Be