CompTIA Security+ SY0-701 Practice Question

To estimate the yearly financial impact of the security breaches, the security manager needs to consider both the frequency of the incidents and the cost of each incident. This is known as Annualized Loss Expectancy, which is the product of the yearly occurrence rate and the cost of a single incident. Since the data breaches happen twice per year, the frequency (occurrence rate) is 2. Multiplying this by the cost for a single data breach ($50,000) gives an estimated annual impact of 2 * $50,000 = $100,000. Similarly named metrics or partially correct values would not account for both the incidence frequency and individual incident cost correctly.