Which term is used to describe the expected monetary loss every time a risk occurs?
Annual Rate of Occurrence (ARO)
Probability
Annualized Loss Expectancy (ALE)
Single Loss Expectancy (SLE)
Single Loss Expectancy (SLE) is the correct answer because it defines the expected monetary loss for every instance that a specific threat could exploit a vulnerability. The other options are not directly related to the monetary loss per occurrence. Annualized Loss Expectancy (ALE) represents the expected monetary loss for a risk over a year. Annual Rate of Occurrence (ARO) is the expected frequency with which a specific risk is anticipated to occur annually. Probability is a measure of the likelihood that a risk event will happen, not the monetary loss associated with it.
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