Certified Chief Information Security Officer (CCISO) — Question 32

Which of the following best represents a calculation for Annual Loss Expectancy (ALE)?

Answer options

• A. Value of the asset multiplied by the loss expectancy
• B. Replacement cost multiplied by the single loss expectancy
• C. Single loss expectancy multiplied by the annual rate of occurrence
• D. Total loss expectancy multiplied by the total loss frequency

Correct answer: C

Explanation

The correct answer is C, as Annual Loss Expectancy (ALE) is calculated by taking the Single Loss Expectancy (SLE) and multiplying it by the Annual Rate of Occurrence (ARO). Options A, B, and D do not accurately represent the formula for ALE, as they involve different calculations or components that do not pertain to ALE.