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An IT manager is concerned about the cost of implementing a web filtering solution in an effort to mitigate the risks associated with malware and resulting data leakage. Given that the ARO is twice per year, the ALE resulting from a data leak is $25,000 and the ALE after implementing the web filter is $15,000. The web filtering solution will cost the organization $10,000 per year. Which of the following values is the single loss expectancy of a data leakage event after implementing the web filtering solution?
Correct Answer: B
Explanation The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). It is mathematically expressed as: ALE = ARO x SLE Single Loss Expectancy (SLE) is mathematically expressed as: Asset value (AV) x Exposure Factor (EF) SLE = AV x EF - Thus the Single Loss Expectancy (SLE) = ALE/ARO = $15,000 / 2 = $ 7,500 References: http://www.financeformulas.net/Return_on_Investment.ht https://en.wikipedia.org/wiki/Risk_assessment