ISC2 Certified Cloud Security Professional (CCSP) Practice Question
During a quantitative risk assessment of a cloud-hosted ERP deployment, the security team determines that exploiting an exposed management API would result in a single loss of 2,000,000 USD and is expected to occur once every four years. Using the Annualized Loss Expectancy (ALE) method, which annualized risk value should be documented?
ALE is calculated by multiplying the Single Loss Expectancy (SLE) by the Annualized Rate of Occurrence (ARO). Here, SLE is 2,000,000 USD. The ARO of once every four years equals 0.25. Multiplying 2,000,000 USD × 0.25 yields an ALE of 500,000 USD, representing the expected yearly financial impact. The other options either omit the ARO, multiply incorrectly, or confuse the rate with the SLE itself.
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How is Annualized Rate of Occurrence (ARO) determined?
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What is Single Loss Expectancy (SLE) in risk assessment?
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ISC2 Certified Cloud Security Professional (CCSP)
Cloud Platform & Infrastructure Security
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