Exam SY0-501 topic 1 question 475 discussion

SLE = ALE / ARO 2500 / 5 = 500 The answer is A

Single-loss expectancy (SLE) is the monetary value expected from the occurrence of a risk on an asset. It is related to risk management and risk assessment. Single-loss expectancy is mathematically expressed as: SLE = asset value x exposure factor If only half of a $1,000,000 asset is lost in an incident, then the exposure factor is 50 percent and the SLE is $500,000. It is possible for a loss to exceed the asset’s value to the corporation, such as in the event of a massive product liability lawsuit; in this case, the EF would be greater than 100 percent. 1/5 times 2500 or 0.02 * 2500= 500

SLE=ALE/ARO. 2500/5 IS 500 as the right answer

You don't even have to do the math here. You know there is exactly ONE right answer so it should be lowest value that you expect to lose - that's when the cost of countermeasures stops making sense.

5X500=2500

Answer should be A https://resources.infosecinstitute.com/quantitative-risk-analysis/#gref Annualized rate of occurrence (ARO) is described as an estimated frequency of the threat occurring in one year. ARO is used to calculate ALE (annualized loss expectancy). ALE is calculated as follows: SLE x ARO = ALE A)500(SLE)*5(ARO) = 2500 https://www.pearsonitcertification.com/articles/article.aspx?p=30287&seqNum=4 […] the annualized loss expectancy (ALE), […] tells the analyst the maximum amount that should be spent on the countermeasure to prevent the threat from occurring. B)1000(SLE)*5(ARO) = 5000 So now think , inverse, The questions says , when to give a “recommendation against purchasing” You should give a recommendation when countermeasures < ALE (CASE B;C;D) You should not give a recommendation when countermeasures (2500) => ALE (2500)