GSLC · Question #148
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 B. Annualized Rate of Occurrence (ARO). Annualized Rate of Occurrence (ARO) is the risk management term that quantifies how frequently a specific threat is expected to occur within a one-year period.
Question
Which of the following terms related to risk management represents the estimated frequency at which a threat is expected to occur?
Options
- ASingle Loss Expectancy (SLE)
- BAnnualized Rate of Occurrence (ARO)
- CSafeguard
- DExposure Factor (EF)
How the community answered
(57 responses)- A9% (5)
- B86% (49)
- C2% (1)
- D4% (2)
Why each option
Annualized Rate of Occurrence (ARO) is the risk management term that quantifies how frequently a specific threat is expected to occur within a one-year period.
Single Loss Expectancy (SLE) represents the estimated monetary loss resulting from a single occurrence of a threat event, not the frequency of occurrence.
ARO is defined in quantitative risk analysis as the estimated number of times a given threat event is expected to occur per year. It is a key input in calculating Annualized Loss Expectancy (ALE = SLE x ARO), making it the direct measure of threat frequency. For example, an ARO of 0.5 means the threat is expected once every two years.
A safeguard (also called a countermeasure or control) is a protective measure implemented to reduce risk - it is an action or mechanism, not a frequency metric.
Exposure Factor (EF) is the percentage of an asset's value that would be lost in a single threat occurrence, representing impact magnitude rather than occurrence frequency.
Concept tested: Quantitative risk analysis - Annualized Rate of Occurrence
Source: https://csrc.nist.gov/glossary/term/annualized_rate_of_occurrence
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