Exam SY0-501 topic 1 question 529 discussion

These metrics are not used to calculate SLE, because : SLE = exposure factor x asset value A. ROI Return on investment - not related to the subject B. ARO Annualized Rate of Occurrence C. ALE Annualized Loss Expectancy = SLE x ARO D. MTBF Mean Time Between Failures - not related to the subject E. MTTF Mean Time to Failure - not related to the subject F. TCO Total Cost of Ownership - not related to the subject Stupid question without correct answer

Estimate potential losses (SLE)—This step involves determining the single loss expectancy (SLE). SLE is calculated as follows: Single loss expectancy x Asset value = Exposure factor Items to consider when calculating the SLE include the physical destruction or theft of assets, the loss of data, the theft of information, and threats that might cause a delay in processing. The exposure factor is the measure or percent of damage that a realized threat would have on a specific asset. Conduct a threat analysis (ARO)—The purpose of a threat analysis is to determine the likelihood of an unwanted event. The goal is to estimate the annual rate of occurrence (ARO). Simply stated, how many times is this expected to happen in one year? Determine annual loss expectancy (ALE)—This third and final step of the quantitative assessment seeks to combine the potential loss and rate per year to determine the magnitude of the risk. This is expressed as annual loss expectancy (ALE). ALE is calculated as follows: Annualized loss expectancy (ALE) x Single loss expectancy (SLE) = Annualized rate of occurrence (ARO)

ALE = SLE × annualized rate of occurrence ( ARO ). The ALE is what you always use to determine the cost of the risk and the TCO (total cost of ownership) is what is used to calculate the cost of a solution.