Which of the following terms related to risk management represents the estimated frequency at
which a threat is expected to occur?

A.
Safeguard

B.
Single Loss Expectancy (SLE)

C.
Exposure Factor (EF)

D.
Annualized Rate of Occurrence (ARO)

Explanation:
The Annualized Rate of Occurrence (ARO) is a number that represents the estimated frequency at
which a threat is expected to occur. It is calculated based upon the probability of the event occurring
and the number of employees that could make that event occur.
Answer option C is incorrect. The Exposure Factor (EF) represents the % of assets loss caused by a
threat. The EF is required to calculate the Single Loss Expectancy (SLE).

Answer option B is incorrect. The Single Loss Expectancy (SLE) is the value in dollars that is assigned
to a single event.
SLE = Asset Value ($) X Exposure Factor (EF)
Answer option A is incorrect. Safeguard acts as a countermeasure for reducing the risk associated
with a specific threat or a group of threats.
“http://en.wikipedia.org/wiki/Risk_management”