If ARO is 0.33 and SLE is $900, what is ALE?

If ARO is 0.33 and SLE is $900, what is ALE?

• A. $297
• B. $9.00
• C. $2,700
• D. $0.297

Answer: (A)

ALE is the expected annual loss from a risk and is found by multiplying how often a loss could occur in a year (ARO) by how much is lost per event (SLE). So, ALE = ARO × SLE. With ARO = 0.33 and SLE = $900, the calculation is 0.33 × 900 = $297 per year. This matches the option that shows $297. Other values would require different AROs or SLEs (for example, a much larger ARO or a different SLE would produce $2,700 or $0.297, respectively).

ALE is the expected annual loss from a risk and is found by multiplying how often a loss could occur in a year (ARO) by how much is lost per event (SLE). So, ALE = ARO × SLE. With ARO = 0.33 and SLE = $900, the calculation is 0.33 × 900 = $297 per year. This matches the option that shows $297. Other values would require different AROs or SLEs (for example, a much larger ARO or a different SLE would produce $2,700 or $0.297, respectively).