A. Annual loss expectancy (ALE)
Annual Loss Expectancy (ALE) is a method used to assign a monetary value to risk. It's calculated by multiplying the Annual Rate of Occurrence (ARO) with the Single Loss Expectancy (SLE). The ALE represents the expected financial loss that an organization might incur in a year due to a particular risk.
Quantitative analysis = assigning monetary value to risk component. And ALE is used to calculate organization's annualized loss expectancy for a specific asset to determine its quantitative risk.
Hence is ALE
The ALE value tells the company that if it wants to put in controls to protect the asset
(e.g. warehouse) from this threat (e.g fire), it can sensibly spend this "$ "or less per year to
provide the necessary level of protection. This "$" amount calculated based on ALE= SLE*ARO. So basically ALE tells maximum amount can be expend to mitigate particular risk. Agree with A
upvoted 2 times
...
This section is not available anymore. Please use the main Exam Page.CRISC Exam Questions
Log in to ExamTopics
Sign in:
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.
Upvoting a comment with a selected answer will also increase the vote count towards that answer by one.
So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
Staanlee
8 months agoCbtL
1 year agoJco
1 year, 5 months agoRaj1510
2 years, 3 months ago