ServiceNow Certified Implementation Specialist – Risk and Compliance — Question 196

The Single Loss Expectancy is $1.000.000 and the Annual Rate of Occurrence is 20%. What is the Annualized Loss Expectancy?

Answer options

• A. $1,000,000
• B. $200,000
• C. $2,000,000
• D. $10,000

Correct answer: B

Explanation

The Annualized Loss Expectancy (ALE) is calculated by multiplying the Single Loss Expectancy (SLE) by the Annual Rate of Occurrence (ARO). In this case, $1,000,000 (SLE) multiplied by 0.20 (ARO) equals $200,000, making option B the correct answer. The other options do not represent the correct multiplication of SLE and ARO.