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Glossary: Policies, Standards and Risk Management

ALE (annualized loss expectancy)

Also written: ALE, annualized loss expectancy

The expected cost of a risk per year, found by multiplying the cost of one event (SLE) by how often it happens per year (ARO). For R-03, the stolen laptop, it was about $700.

Where the book teaches it

Related terms

SLE (single loss expectancy)ARO (annualized rate of occurrence)quantitative analysis