Larry is in charge of presenting risk assessment calculations to his boss by the end of the week. He concludes that a server with heavy traffic has an annualized loss expectancy (ALE) of $15,000 with an annualized rate of occurrence (ARO) of 5. What is the servers single loss expectancy (SLE) value?
A.
$5,000
B.
$3,000
C.
$75,000
D.
$20,000
Explanation:
The ALE formula is used to determine the potential financial loss of a specific
asset based upon the likely threats that may be realized. The ALE calculation is as
follows: SLE x ARO = ALE. In this example:
ALE ($15,000) = ARO (5) x SLE ($3,000).