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Training Camp • Cybersecurity Glossary
Annualized Loss Expectancy (ALE) is the expected yearly loss from a threat, calculated as Single Loss Expectancy times Annualized Rate of Occurrence.
Annualized Loss Expectancy (ALE) Definition: Annualized Loss Expectancy (ALE) is the expected yearly loss from a threat, calculated as Single Loss Expectancy times Annualized Rate of Occurrence.
Annualized Loss Expectancy (ALE) is a quantitative risk-analysis metric representing the expected monetary loss from a specific threat over one year. It is calculated by multiplying the Single Loss Expectancy (SLE) by the Annualized Rate of Occurrence (ARO), expressed as ALE = SLE x ARO. ALE helps organizations prioritize controls and justify security investments by comparing the cost of safeguards against expected annual losses.
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