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(ISC)2

CERTIFIED-IN-CYBERSECURITY · Question #101

In the context of risk management, which information does ALE outline?

The correct answer is B. The expected cost per year of not performing a given risk-mitigating action. The Annualized Loss Expectancy (ALE) is a standard metric of risk exposure that refers to the expected cost per year of a given risk if it is not mitigated. The business impact of a risk is technically considered a loss, and is better captured by a metric called Single Loss…

Risk Management

Question

In the context of risk management, which information does ALE outline?

Options

  • AThe business impact of a risk
  • BThe expected cost per year of not performing a given risk-mitigating action
  • CThe probability of a risk coming to pass in a given year
  • DThe percentage of Asset Lost Efficiency

How the community answered

(49 responses)
  • A
    4% (2)
  • B
    92% (45)
  • C
    2% (1)
  • D
    2% (1)

Explanation

The Annualized Loss Expectancy (ALE) is a standard metric of risk exposure that refers to the expected cost per year of a given risk if it is not mitigated. The business impact of a risk is technically considered a loss, and is better captured by a metric called Single Loss Expectancy (see ISC2 Study Guide, chapter 1, module 2). The probability of a risk coming to pass in a given year is best captured by a metric called Annualized Rate of Occurrence (ARO). Asset Lost Efficiency is a misleading term that is not directly related to risk management.

Topics

#Risk Management#Annualized Loss Expectancy#Quantitative Risk Analysis#Risk Assessment

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