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Free CISSP Certification Practice Questions:


Which formula can be used to calculate the Annualized Loss Expectancy (ALE)?

A) SLE (Single Loss Expectancy) + ARO (Annualized Rate of Occurrence)

B) Asset Value * EF (Exposure Factor)

C) Asset Value * EF (Exposure Factor) * ARO (Annualized Rate of Occurrence)

D) SLE (Single Loss Expectancy) * ARO (Annualized Rate of Occurrence) * Asset Value

  • [Ans: C]



    • The ALE (Annualized Loss Expectancy) is calculated as follows: SLE (Single Loss Expectancy) * ARO (Annualized Rate of Occurrence).

    The SLE (Single Loss Expectancy) is calculated as follows: Asset Value * EF (Exposure Factor)

    Hence, ALE can also be calculated as follows: Asset Value * EF (Exposure Factor) * ARO (Annualized Rate of Occurrence).





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