Which of the following terms related to risk management represents the estimated frequency at which a threat is expected to occur?

The correct answer is D. Annualized Rate of Occurrence (ARO). ARO (Annualized Rate of Occurrence) represents how many times per year a specific threat or risk event is expected to occur. It is a key component in the ALE (Annualized Loss Expectancy) formula: ALE = SLE × ARO. For example, if a server is expected to fail twice per year, the AR

Security and Privacy Governance, Risk Management, and Compliance Program

Question

Options

ASafeguard
BSingle Loss Expectancy (SLE)
CExposure Factor (EF)
DAnnualized Rate of Occurrence (ARO)

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(54 responses)

A
4% (2)
B
2% (1)
C
2% (1)
D
93% (50)

Explanation

ARO (Annualized Rate of Occurrence) represents how many times per year a specific threat or risk event is expected to occur. It is a key component in the ALE (Annualized Loss Expectancy) formula: ALE = SLE × ARO. For example, if a server is expected to fail twice per year, the ARO is 2. The other options are related but distinct: SLE is the monetary loss from a single incident, EF is the percentage of asset value lost per incident, and a Safeguard is a countermeasure to reduce risk.

Topics

#Risk Management#Quantitative Risk Analysis#Annualized Rate of Occurrence#Threat Frequency

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