SY0-301 · Question #125
Sara, a security analyst, is trying to prove to management what costs they could incur if their customer database was breached. This database contains 250 records with PII. Studies show that the…
The correct answer is B. $3,750. ALE (Annualized Loss Expectancy) is calculated as: ALE = SLE × ARO. First, calculate the SLE (Single Loss Expectancy): 250 records × $300 per record = $75,000. Then, apply the ARO (Annualized Rate of Occurrence), which is the 5% probability: $75,000 × 0.05 = $3,750. The other…
Question
Sara, a security analyst, is trying to prove to management what costs they could incur if their customer database was breached. This database contains 250 records with PII. Studies show that the cost per record for a breach is $300. The likelihood that their database would be breached in the next year is only 5%. Which of the following is the ALE that Sara should report to management for a security breach?
Options
- A$1,500
- B$3,750
- C$15,000
- D$75,000
How the community answered
(41 responses)- A5% (2)
- B71% (29)
- C7% (3)
- D17% (7)
Explanation
ALE (Annualized Loss Expectancy) is calculated as: ALE = SLE × ARO. First, calculate the SLE (Single Loss Expectancy): 250 records × $300 per record = $75,000. Then, apply the ARO (Annualized Rate of Occurrence), which is the 5% probability: $75,000 × 0.05 = $3,750. The other options reflect common calculation mistakes: $1,500 (A) is incorrect; $15,000 (C) would result from using 20% instead of 5%; $75,000 (D) is the SLE alone without applying the ARO.
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