CRISC IT Risk Assessment Practice Question
A quantitative risk assessment for a server shows an ARO of 0.5 and SLE of $200,000. What is the ALE, and what does it imply?
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
✓
ALE = $100,000; expected annual loss
ALE = ARO × SLE = 0.5 × $200,000 = $100,000. This means the expected annual loss from this risk is $100,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
ALE = $400,000; maximum possible loss
Why it's wrong here
Incorrect calculation; ALE is not maximum loss.
- ✗
ALE = $100,000; single loss expectancy
Why it's wrong here
SLE is $200,000; ALE is annual expected loss.
- ✓
ALE = $100,000; expected annual loss
Why this is correct
Correct calculation and interpretation.
- ✗
ALE = $200,000; annual cost of controls
Why it's wrong here
This is the SLE, not ALE.
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JA
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.