Which choice below is the BEST description of an Annualized Loss Expectancy (ALE)?

A.
The expected risk factor of an annual threat event, derived by multiplying the SLE by its ARO

B.
The percentile of the value of the asset expected to be lost, used to calculate the SLE

C.
A value determined by multiplying the value of the asset by its exposure factor

D.
An estimate of how often a given threat event may occur annually

Explanation:
Answer “An estimate of how often a given threat event may occur annually” describes the
Annualized Rate of Occurrence (ARO). Answer “The percentile of the value of the asset expected to
be lost, used to calculate the SLE” describes the Exposure Factor (EF). Answer “A value determined
by multiplying the value of the asset by its exposure factor” describes the algorithm to determine
the Single Loss Expectancy (SLE) of a threat.