SY0-501 · Question #77
Which of the following is the summary of loss for a given year?
The correct answer is B. ALE. ALE (Annual Loss Expectancy) represents the total expected financial loss from a specific risk over a one-year period, calculated by multiplying SLE by ARO.
Question
Which of the following is the summary of loss for a given year?
Options
- AMTBF
- BALE
- CSLA
- DARO
How the community answered
(28 responses)- A4% (1)
- B75% (21)
- C14% (4)
- D7% (2)
Why each option
ALE (Annual Loss Expectancy) represents the total expected financial loss from a specific risk over a one-year period, calculated by multiplying SLE by ARO.
MTBF (Mean Time Between Failures) measures the average time between system failures, which relates to reliability and availability, not financial loss summary.
ALE (Annual Loss Expectancy) is the product of Single Loss Expectancy (SLE) and Annual Rate of Occurrence (ARO), giving organizations a yearly summary of expected loss from a given threat. It is a core metric in quantitative risk analysis used to prioritize security investments and justify controls based on potential financial impact.
SLA (Service Level Agreement) is a contractual agreement defining expected service performance standards, not a financial loss calculation metric.
ARO (Annual Rate of Occurrence) estimates how many times a threat event is expected to occur per year, which is an input to the ALE formula, not the summary of loss itself.
Concept tested: Quantitative risk analysis metrics and ALE calculation
Source: https://csrc.nist.gov/glossary/term/annualized_loss_expectancy
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