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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.
Annualized Loss Expectancy (ALE) is one of the topics you'll master in the CISSP Boot Camp.
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