ServiceNow Certified Implementation Specialist – Risk and Compliance — Question 37

Which of the following is the correct statement about Risk Scoring formulas?

Answer options

• A. SLE × ARO = ALE
• B. ALE × ARO = Compliance Score
• C. ALE × ARO = SLE
• D. Impact × Urgency = ALE

Correct answer: A

Explanation

The correct answer is A, as the formula SLE (Single Loss Expectancy) multiplied by ARO (Annual Rate of Occurrence) equals ALE (Annual Loss Expectancy). The other options are incorrect because they misrepresent the relationships between the different risk metrics.