Understanding Risk Assessment Concepts

What is the formula for calculating the Annualized Loss Expectancy (ALE)?

• ALE = AV × EF

• ALE = SLE × ARO

• ALE = AV × ARO

• ALE = SLE × EF

If an asset is valued at £10,000 and the Exposure Factor (EF) is 0.25, what is the Single Loss Expectancy (SLE)?

• £2,500

• £5,000

• £7,500

• £10,000

What does the Annualized Rate of Occurrence (ARO) represent?

• The total value of an asset

• The percentage of asset value lost

• The frequency of a threat occurring in a year

• The expected monetary loss over a year

If a threat is expected to occur once every 10 years, what is the ARO?

• 0.1

• 0.2

• 0.5

• 1.0

An asset valued at £50,000 has an EF of 0.4. What is the SLE?

• £10,000

• £20,000

• £30,000

• £40,000

If the SLE is £15,000 and the ARO is 0.3, what is the ALE?

• £3,000

• £4,500

• £9,000

• £12,000

What is the Exposure Factor (EF) if 50% of an asset's value is lost due to a threat?

• 0.1

• 0.3

• 0.5

• 0.7

If an asset is worth £200,000 and the EF is 0.15, what is the SLE?

• £15,000

• £20,000

• £30,000

• £40,000

What is the ALE if the SLE is £8,000 and the ARO is 0.05?

• £200

• £400

• £600

• £800

If a threat occurs twice a year, what is the ARO?

• 0.5

• 1.0

• 2.0

• 3.0