The annualized loss expectancy of the classic risk analysis calculation is the yearly average loss expected from a compromise for the asset.

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Quizplus · Accepted Answer

The Annualized Loss Expectancy (ALE) is indeed a calculation used in risk management to determine the yearly cost of a risk based on the annual rate of occurrence and the potential loss per incident. It helps organizations understand the financial impact of risks to their assets over time.

The Annualized Loss Expectancy of the Classic Risk Analysis Calculation