Annualized Loss Expectancy

	Annualized Loss Expectancy 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: : \text = \text \times \text 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 1, the annualized loss expectancy is 1 * $25,000, or $25,000. For an ARO of 3, the equation is: ALE = 3 * $25,000. Therefore: ALE = $75,000 See also Single loss expectancy Single-loss expectancy (SLE) is the monetary value expected from the occurrence of a risk on an asset. It is related to risk management and risk assessment. Single-loss expectancy is mathematically expressed as: = \times Where the exposure f ... References {{Reflist Financial ... [...More Info...] [...Related Items...] OR:* [Wikipedia] [Google] [Baidu]
	Annual Rate Of Occurrence Broadly speaking, a risk assessment is the combined effort of: # identifying and analyzing potential (future) events that may negatively impact individuals, assets, and/or the environment (i.e. hazard analysis); and # making judgments "on the tolerability of the risk on the basis of a risk analysis" while considering influencing factors (i.e. risk evaluation). Put in simpler terms, a risk assessment determines possible mishaps, their likelihood and consequences, and the tolerances for such events. The results of this process may be expressed in a Quantitative property, quantitative or Qualitative data, qualitative fashion. Risk assessment is an inherent part of a broader risk management strategy to help reduce any potential risk-related consequences. Need Individual risk assessment Risk assessment are done in individual cases, including patient and physician interactions. Individual judgements or assessments of risk may be affected by psychological, ideological, religious or o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Single Loss Expectancy Single-loss expectancy (SLE) is the monetary value expected from the occurrence of a risk on an asset. It is related to risk management and risk assessment. Single-loss expectancy is mathematically expressed as: = \times Where the exposure factor is represented in the impact of the risk over the asset, or percentage of asset lost. As an example, if the asset value is reduced by two thirds, the exposure factor value is 0.66. If the asset is completely lost, the exposure factor is 1. The result is a monetary value in the same unit as the single-loss expectancy is expressed (euros, dollars, yens, etc.): exposure factor is the subjective, potential percentage of loss to a specific asset if a specific threat is realized. The exposure factor is a subjective value that the person assessing risk must define. See also Information assurance Risk assessment Annualized loss expectancy The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and t ... [...More Info...] [...Related Items...] OR:* [Wikipedia] [Google] [Baidu]
	Exposure Factor Exposure factor (EF) is the subjective, potential percentage of loss to a specific asset if a specific threat is realized. The exposure factor is a subjective value that the person assessing risk must define. = \times The exposure factor is represented in the impact of the risk over the asset, or percentage of asset lost. As an example, if the asset value In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can ... is reduced two thirds, the exposure factor value is 0.66. If the asset is completely lost, the exposure factor is 1.0. Financial risk management {{business-term-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Single Loss Expectancy Single-loss expectancy (SLE) is the monetary value expected from the occurrence of a risk on an asset. It is related to risk management and risk assessment. Single-loss expectancy is mathematically expressed as: = \times Where the exposure factor is represented in the impact of the risk over the asset, or percentage of asset lost. As an example, if the asset value is reduced by two thirds, the exposure factor value is 0.66. If the asset is completely lost, the exposure factor is 1. The result is a monetary value in the same unit as the single-loss expectancy is expressed (euros, dollars, yens, etc.): exposure factor is the subjective, potential percentage of loss to a specific asset if a specific threat is realized. The exposure factor is a subjective value that the person assessing risk must define. See also Information assurance Risk assessment Annualized loss expectancy The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and t ... [...More Info...] [...Related Items...] OR:* [Wikipedia] [Google] [Baidu]