Quick SY0-701 Scenario: Calculate ALE
Here’s a Domain 5 scenario for today.
A company is evaluating the risk of a ransomware attack against a critical file server.
The security team estimates:
• Asset value: $200,000 • Exposure factor: 25% • Annualized rate of occurrence: 0.4
What is the Annualized Loss Expectancy?
A) $20,000 B) $50,000 C) $80,000 D) $200,000
Take a moment to calculate it before checking below.
Answer: A
Explanation: First calculate the Single Loss Expectancy:
SLE = Asset Value × Exposure Factor SLE = $200,000 × 0.25 = $50,000
Then calculate Annualized Loss Expectancy:
ALE = SLE × ARO ALE = $50,000 × 0.4 = $20,000
So the correct answer is A) $20,000.
Why the others don’t fit: B is the SLE, not the ALE. C incorrectly applies the ARO to the full asset value. D is the full asset value, not the expected annualized loss.