Which of the following would be most useful in determining whether the long-term cost to transfer a risk is less than the impact of the risk?

The correct answer is D. ALE. The Annual Loss Expectancy (ALE) is most useful in determining whether the long-term cost to transfer a risk is less than the impact of the risk. ALE is calculated by multiplying the Single Loss Expectancy (SLE) by the Annualized Rate of Occurrence (ARO), which provides an…

Submitted by parkjh· Mar 6, 2026Security program management and oversight

Question

Which of the following would be most useful in determining whether the long-term cost to transfer a risk is less than the impact of the risk?

Options

AARO
BRTO
CRPO
DALE
ESLE

How the community answered

(34 responses)

A
3% (1)
B
6% (2)
C
9% (3)
D
82% (28)

Explanation

The Annual Loss Expectancy (ALE) is most useful in determining whether the long-term cost to transfer a risk is less than the impact of the risk. ALE is calculated by multiplying the Single Loss Expectancy (SLE) by the Annualized Rate of Occurrence (ARO), which provides an estimate of the annual expected loss due to a specific risk, making it valuable for long-term financial planning and risk management decisions.

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