Secure Software Lifecycle Professional – CSSLP – Question049

An asset with a value of $600,000 is subject to a successful malicious attack threat twice a year. The asset has an exposure of 30 percent to the threat. What will be the annualized loss expectancy?

A. $360,000
B. $180,000
C. $280,000
D. $540,000

Correct Answer: A

Explanation:

Explanation: The annualized loss expectancy will be $360,000. Annualized loss expectancy (ALE) is the annually expected financial loss to an organization from a threat. The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). It is mathematically expressed as follows:
ALE = Single Loss Expectancy (SLE) * Annualized Rate of Occurrence (ARO)
Here, it is as follows:
SLE = Asset value * EF (Exposure factor)
= 600,000 * (30/100)
= 600,000 * 0.30
= 180,000 ALE
= SLE * ARO
= 180,000 * 2
= 360,000 Answer: C, B, and D are incorrect. These are not valid answers.