SY0-501 · Question #360
To determine the ALE of a particular risk, which of the following must be calculated? (Select TWO).
The correct answer is A. ARO D. SLE. To determine the Annualized Loss Expectancy (ALE) of a risk, one must calculate the Single Loss Expectancy (SLE) and the Annualized Rate of Occurrence (ARO), as ALE = SLE * ARO.
Question
To determine the ALE of a particular risk, which of the following must be calculated? (Select TWO).
Options
- AARO
- BROI
- CRPO
- DSLE
- ERTO
How the community answered
(39 responses)- A79% (31)
- B10% (4)
- C5% (2)
- E5% (2)
Why each option
To determine the Annualized Loss Expectancy (ALE) of a risk, one must calculate the Single Loss Expectancy (SLE) and the Annualized Rate of Occurrence (ARO), as ALE = SLE * ARO.
ARO (Annualized Rate of Occurrence) is the estimated frequency with which a threat or risk event is expected to occur in a single year, and it serves as a direct multiplier in the ALE formula.
ROI (Return on Investment) is a financial metric used to evaluate the efficiency or profitability of an investment and is not a component of the ALE risk calculation.
RPO (Recovery Point Objective) is a disaster recovery metric specifying the maximum acceptable amount of data loss measured in time, unrelated to the financial calculation of risk expectancy.
SLE (Single Loss Expectancy) represents the expected monetary loss each time a specific risk event occurs, typically calculated as Asset Value multiplied by the Exposure Factor (AV * EF), and is the other critical component of the ALE formula.
RTO (Recovery Time Objective) is a disaster recovery metric specifying the maximum acceptable duration of downtime after a disruption, unrelated to the financial calculation of risk expectancy.
Concept tested: Annualized Loss Expectancy (ALE) calculation components
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