Glossary: Business Risk, Third Parties and Compliance
Annualized loss expectancy (ALE)
Also written: ALE
The money you expect to lose to one risk in an average year, worked out as SLE × ARO. Ransomware on the order server has an ALE of $20,000 × 0.2 = $4,000 a year.
Where the book teaches it
Related terms
Single loss expectancy (SLE)Annualized rate of occurrence (ARO)Return on investment (ROI)Quantitative analysis