Annualized loss expectancy (ALE) is $45,000.
Your organization's annualized loss expectancy for a particular asset is calculated using the annualized loss expectancy formula, or ALE formula, to determine its quantitative risk. You may develop budgets, plan for your company's financial future, and identify any losses you may sustain by using an ALE formula.
Given;
Single loss expectancy (SLE) = $90,000
Annualized Rate of Occurrence (ARO) = 50% of $90,000 = $(50/100) = 0.5
Annual loss expectancy (ALE) = Single Loss Expectancy (SLE) * Annualized Rate of Occurrence (AR)
ALE = SLE/ARO
ALE = 90,000/ 0.5
ALE = 45,000
As a result, the company can expect an annualized loss expectancy of $45,000.
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