What will be the annualized loss expectancy in her project?

Della work as a project manager for BlueWell Inc. A threat with a dollar value of $250,000 is expected to happen in her project and the frequency of threat occurrence per year is 0.01.

What will be the annualized loss expectancy in her project?
A . $2,000
B . $2,500
C . $3,510
D . $3,500

View Answer

Answer: B

Explanation:

The annualized loss expectancy in her project will be $2,500. Annualized loss expectancy (ALE) is the annually expected financial loss to an organization from a threat. 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 follows: ALE = Single Loss Expectancy (SLE) * Annualized Rate of Occurrence (ARO) Here, it is as follows:

ALE = SLE * ARO

= 250,000 * 0.01

= 2,500

ANS: D, C, and A are incorrect. These are not valid answers.