What is an ARO?

A.
A dollar figure assigned to a single event

B.
The percentage of loss that a realized threat event would have on a specific asset

C.
The annual expected financial loss to an organization from a threat

D.
A number that represents the estimated frequency of an occurrence of an expected threat

Explanation:
The correct answer is “A number that represents the estimated frequency of an occurrence of an
expected threat”. Answer “A dollar figure assigned to a single event” is the definition of SLE, “The
annual expected financial loss to an organization from a threat” is an ALE, and “The percentage of
loss that a realized threat event would have on a specific asset” is an EF.