Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use an Annualized Loss Expectancy (ALE) method of risk analysis. This process was from the FIPS PUB 65, Guideline for Automatic Data Processing Risk Analysis.

Use an Annualized Loss Expectancy (ALE) method of risk analysis. This process was from the FIPS PUB 65, Guideline for Automatic Data Processing Risk Analysis. The write up went something like this:

The Annualized Loss Expectancy (ALE) is the expected monetary loss that can be expected for an asset due to a risk over a one year period. It is defined as: ALE = SLE * ARO where SLE is the Single Loss Expectancy and ARO is the Annualized Rate of Occurrence.

Why don’t we still use this form of analysis?

Step by Step Solution

3.36 Rating (165 Votes )

There are 3 Steps involved in it

Step: 1

The Annualized Loss Expectancy is the expected monetary loss that can be expected for an asset as re... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics

Authors: James T. McClave, Terry T Sincich

12th Edition

9780321831088, 321755936, 032183108X, 978-0321755933

More Books

Students also viewed these Corporate Finance questions

Question

=+c. Given that the selected can had a surface defect,

Answered: 1 week ago