Double Jeopardy CIS119 Final

Domain 1: Risk Management

100

Calculate the Annualized Loss Expectancy (ALE)

You’re protecting a key company asset. Here are the values you found:

• Asset value = 400

• Exposure factor = 75% (or 0.75)

• Annualized rate of occurrence = 0.25

The answer is 75

_{ALE = Asset Value × Exposure Factor × Annualized Rate of Occurrence}

_{Calculation: 400 × 0.75 × 0.25 = 75}