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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?
$2,000
$2,500
$3,500
$3,510
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
Answer: D, C, and A are incorrect. These are not valid answers.
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