- See also
The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). It is mathematically expressed as:
Suppose that an asset is valued at $100,000, and the Exposure Factor (EF) for this asset is 25%. The single loss expectancy (SLE) then, is 25% * $100,000, or $25,000.
The annualized loss expectancy is the product of the annual rate of occurrence (ARO) and the single loss expectancy.
ALE = ARO * SLE
For an annual rate of occurrence of one, the annualized loss expectancy is 1 * $25,000, or $25,000.
For an ARO of three, the equation is:
ALE = 3 * $25,000. Therefore:
ALE = $75,000
See also
- Single loss expectancy
1 : Financial risk
- Oil Creek Township, PA
- Oil Creek Township, Venango County, Pennsylvania
- Oil Crises
- Oil Crisis
- Oil crisis
- Oil crisis 2005
- Oil crisis of 2005
- Oildale, CA
- Oildale, California
- Oil depletion
- Oil deposits
- Oil derrick
- Oil desulfurization
- Oil diplomacy
- Oil (disambiguation)
- Oil drill
- Oil drilling
- Oil drop experiment
- Oil Drop Experiment
- Oiled chalk
- Oil embargo crisis
- Oil empire
- Oil - Enviromental Impact
- Oileos
- Oiler