• Source: Annualized loss expectancy

The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). It is mathematically expressed as:





ALE

=

ARO

×

SLE



{\displaystyle {\text{ALE}}={\text{ARO}}\times {\text{SLE}}}


Suppose that an asset is valued at $100,000, and the Exposure Factor (EF) for this asset is 25%. The single loss expectancy (SLE) then, is 25% * $100,000, or $25,000.
The annualized loss expectancy is the product of the annual rate of occurrence (ARO) and the single loss expectancy.
ALE = ARO * SLE
For an annual rate of occurrence of 1, the annualized loss expectancy is 1 * $25,000, or $25,000.
For an ARO of 3, the equation is:
ALE = 3 * $25,000. Therefore:
ALE = $75,000




See also


Single loss expectancy




References

Kata Kunci Pencarian:

• Annualized loss expectancy
• Single-loss expectancy
• Ale (disambiguation)
• Risk management
• IT risk management
• Life expectancy
• Risk assessment
• Exposure factor
• Expectancy violations theory
• Expectancy-value theory