You work as a project manager for SoftTech Inc. A threat with a dollar value of $150,000 is expected to happen in your project and the frequency of threat occurrence per year is 0.001. What will be…

The correct answer is B. $150. The annualized loss expectancy in your project will be $150. Annualized loss expectancy (ALE) is the annually expected financial loss to an organization from a threat. The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss…

Security Leadership and Management

Question

You work as a project manager for SoftTech Inc. A threat with a dollar value of $150,000 is expected to happen in your project and the frequency of threat occurrence per year is 0.001. What will be the annualized loss expectancy in your project?

Options

A$180.25
B$150
C$100
D$120

How the community answered

(34 responses)

A
12% (4)
B
79% (27)
C
6% (2)
D
3% (1)

Explanation

The annualized loss expectancy in your project will be $150. Annualized loss expectancy (ALE) is the annually expected financial loss to an organization from a threat. The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). It is mathematically expressed as follows. ALE = Single Loss Expectancy (SLE) * Annualized Rate of Occurrence (ARO) Here, it is as = 150,000 * 0.001 Answer options C, D, and A are incorrect. These are not valid answers.

Topics

#Risk Management#Annualized Loss Expectancy (ALE)#Quantitative Risk Analysis#Risk Calculation

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