CRISC IT Risk Assessment Practice Question
A company uses the FAIR model to perform a quantitative risk analysis. The threat event frequency (TEF) is estimated at 10 per year, vulnerability (V) is 0.5, and loss magnitude (LM) per event is $50,000. What is the annualized loss expectancy (ALE)?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
$250,000
FAIR: LEF = TEF × V = 10 × 0.5 = 5 events/year. ALE = LEF × LM = 5 × $50,000 = $250,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$25,000
Why it's wrong here
Incorrect; miscalculation.
- ✗
$50,000
Why it's wrong here
Incorrect; that's per event, not annualized.
- ✗
$500,000
Why it's wrong here
Incorrect; that would be if LEF were 10.
- ✓
$250,000
Why this is correct
Correct; LEF=5, ALE=5*$50k=$250k.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CRISC practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CRISC exam.