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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