Exam SY0-601 topic 1 question 595 discussion

SLE stands for Single Loss Expectancy and is the expected monetary loss from a single incident. ARO stands for Annualized Rate of Occurrence and is the estimated number of times an incident is expected to occur in a year. ALE = SLE x ARO The other options are incorrect. EF x asset value is the formula for calculating the Exposure Factor, which is a measure of the potential loss from a single incident. ALE / SLE is the inverse of the formula for calculating the ALE. MTBF x impact is the formula for calculating the Mean Time Between Failures, which is a measure of the reliability of a system.

The formula used to calculate the total loss expected per year due to a threat targeting an asset is SLE (Single Loss Expectancy) multiplied by ARO (Annualized Rate of Occurrence). The result of this calculation gives the Annualized Loss Expectancy (ALE), which represents the expected financial loss in a year. The formula is as follows: ALE = SLE x ARO Where: SLE (Single Loss Expectancy) is the monetary value of a single loss event. ARO (Annualized Rate of Occurrence) is the number of times the threat event is expected to occur in a year. By using this formula, organizations can assess the potential financial impact of a specific threat and make informed decisions on risk management and mitigation strategies.

D. SLE x ARO

total or annual loss is single loss multiplied by the rate of occurrence