CISSP-ISSMP Question #134: Real Exam Question with Answer & Explanation

The correct answer is D: Single Loss Expectancy (SLE) X Annualized Rate of Occurrence (ARO). The Annualized Loss Expectancy (ALE) that occurs due to a threat can be calculated by multiplying the Single Loss Expectancy (SLE) with the Annualized Rate of Occurrence (ARO). Annualized Loss Expectancy (ALE) = Single Loss Expectancy (SLE) X Annualized Rate of Occurrence (ARO) A

Security Leadership and Management

Question

How can you calculate the Annualized Loss Expectancy (ALE) that may occur due to a threat?

Options

ASingle Loss Expectancy (SLE)/ Exposure Factor (EF)
BAsset Value X Exposure Factor (EF)
CExposure Factor (EF)/Single Loss Expectancy (SLE)
DSingle Loss Expectancy (SLE) X Annualized Rate of Occurrence (ARO)

Explanation

The Annualized Loss Expectancy (ALE) that occurs due to a threat can be calculated by multiplying the Single Loss Expectancy (SLE) with the Annualized Rate of Occurrence (ARO). Annualized Loss Expectancy (ALE) = Single Loss Expectancy (SLE) X Annualized Rate of Occurrence (ARO) Annualized Rate of Occurrence (ARO) is a number that represents the estimated frequency in which a threat is expected to occur. It is calculated based upon the probability of the event occurring and the number of employees that could make that event occur. Single Loss Expectancy (SLE) is the value in dollars that is assigned to a single event. SLE can be calculated by the following formula. SLE = Asset Value ($) X Exposure Factor (EF) The Exposure Factor (EF) represents the % of assets loss caused by a threat. The EF is required to calculate Single Loss Expectancy (SLE).

Topics

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

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