The risk manager at a small bank wants to use quantitative analysis to determine the ALE of running a
business system at a location which is subject to fires during the year. A risk analyst reports to the risk manager
that the asset value of the business system is $120,000 and, based on industry data, the exposure factor to
fires is only 20% due to the fire suppression system installed at the site. Fires occur in the area on average
every four years. Which of the following is the ALE?

A.
$6,000

B.
$24,000

C.
$30,000

D.
$96,000