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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