Glossary: Business Risk, Third Parties and Compliance
Annualized rate of occurrence (ARO)
Also written: ARO
How many times an event is expected to happen in one year. It is a frequency, not money: an event that happens once every five years has an ARO of 1 ÷ 5 = 0.2.
Where the book teaches it
Related terms
Annualized loss expectancy (ALE)Single loss expectancy (SLE)Exposure factor (EF)