Glossary: Governance, Risk and Compliance
annualized loss expectancy (ALE)
Also written: ALE
The expected cost of a risk per year, averaged over many years: SLE x ARO. Kettle & Crane's ransomware risk is $20,000 x 0.2 = $4,000 a year, even though most years cost nothing.
Where the book teaches it
Related terms
single loss expectancy (SLE)annualized rate of occurrence (ARO)quantitativecontrol value