ALE is calculated using which formula?
A CISSP practice question covering Domain 1: Security and Risk Management. Try answering before reading the explanation below.
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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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