medium
Single Answer
0Ian wants to calculate the annualized loss expectancy for an asset. What two values does he need to know?
Answer Options
A
SLE and ARO
B
ARO and MTBF
C
SLE and RPO
D
MTBF and RTO
Correct Answer: A
Explanation
Annualized loss expectancy (ALE) is calculated by multiplying the annual rate of occurrence (ARO) by the single loss expectancy (SLE). If a single loss expectancy for a $1,000,000 asset is $100,000 and the annual rate of occurrence is .5—in other words, it happens every two years on average—then the ALE is $50,000.