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