One of the elements used to define the impact of a loss in dollars is:
A.
Annual loss expectancy
B.
Probability
C.
Criticality
D.
Risk
The Answer Is:
A
This question includes an explanation.
Explanation:
Annual Loss Expectancy (ALE) is a key financial metric used in risk management to estimate the potential dollar loss per year due to a specific risk. It is calculated as:
ALE = Single Loss Expectancy (SLE) × Annual Rate of Occurrence (ARO).
This helps quantify the financial impact of a threat, allowing better prioritization and budgeting for mitigation efforts.
B (Probability) is part of the ALE calculation but not a dollar-value measure.
C (Criticality) relates to function importance but not direct financial impact.
D (Risk) is broader and includes impact and likelihood, but ALE specifically quantifies impact in dollars.
[References:, PSP Study Guide – Risk Assessment Metrics, POA Manual – Cost of Risk and Loss Expectancy]
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