shieldCISSP Practice Domain 1 — Security and Risk Management Q2 of 120

ALE is calculated using which formula?

A CISSP practice question covering Domain 1: Security and Risk Management. Try answering before reading the explanation below.

Show options & answer
A
ALE = SLE × ARO
✓ Correct answer
B
ALE = AV × EF
C
ALE = SLE × EF
D
ALE = ARO × AV
Why "ALE = SLE × ARO" is the right answer

Annualized Loss Expectancy = Single Loss Expectancy × Annualized Rate of Occurrence. SLE itself is Asset Value × Exposure Factor. ALE is the headline number used in quantitative risk analysis to compare risks.

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