What is the definition of the Annual Loss Expectancy?

A.
The Annual Loss Expectancy is the amount of damage that can occur as a result of an incident during the year.

B.
The Annual Loss Expectancy is the size of the damage claims resulting from not having carried out risk analyses effectively.

C.
The Annual Loss Expectancy is the average damage calculated by insurance companies for businesses in a country.

D.
The Annual Loss Expectancy is the minimum amount for which an organization must insure itself.

Explanation:
SLE stands for single loss expectancy, and ALE for annualized loss expectancy.
The SLE is an amount that is assigned to a single event that represents the companys potential loss if a specific threat were to take place.
The annualized rate of occurrence (ARO) is the value that represents the estimated frequency of a specific threat taking place within a one-year timeframe.