Which two values are required to calculate annual loss expectancy


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Which two values are required to calculate annual loss expectancy?

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Answer:

In calculating risk, there are two general formulas that are used: SLE (single loss expectancy) and ALE (annualized loss expectancy). SLE is the starting point to determine the single loss that would occur if a specific item occurred. The formula for the SLE is: SLE = asset value × exposure factor.


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