What is the Annualized Loss Expectancy(ALE)?
To calculate the Annualized Loss Expectancy (ALE), we use the following formula. The final answer is the Annualized Loss Expectancy (ALE) is 450.
ALE = Asset value x Exposure factor x Annualized Rate of Occurrence
Plugging in the given values, we get:
ALE = 2400 x 0.75 x 0.25
ALE = 450
The Annualized Loss Expectancy (ALE) is a measure of the expected monetary loss for an asset due to a risk over a one-year period. It is calculated by multiplying the asset value by the exposure factor by the annualized rate of occurrence. In this case, the asset value is $2400 and the exposure factor is 0.75, which means that 75% of the asset value is at risk. The annualized rate of occurrence is 0.25, which means that the risk occurs on average once every four years.
What is the formula to calculate the Annualized Loss Expectancy (ALE)?
The formula to calculate the Annualized Loss Expectancy (ALE) is ALE = Asset value x Exposure factor x Annualized Rate of Occurrence.