Which two values are required to calculate annual loss expectancy? (Choose two.)Question 50Select one or more:frequency factorquantitative loss valuesingle loss expectancyannual rate of occurrenceexposure factorasset value
Question
Which two values are required to calculate annual loss expectancy? (Choose two.)Question 50Select one or more:frequency factorquantitative loss valuesingle loss expectancyannual rate of occurrenceexposure factorasset value
Solution
To calculate Annual Loss Expectancy (ALE), you need two values:
- Single Loss Expectancy (SLE)
- Annual Rate of Occurrence (ARO)
The Single Loss Expectancy is the monetary value expected to be lost in a single event, while the Annual Rate of Occurrence is the expected frequency of a specific event occurring within a year. The ALE is then calculated by multiplying the SLE by the ARO.
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