CRISC IT Risk Assessment Practice Question
An organization uses the FAIR framework to assess the risk of a data breach. The risk analyst estimates that the Threat Event Frequency (TEF) is 10 per year, the Vulnerability (V) is 0.2, the Primary Loss per event is $50,000, and the Secondary Loss per event is $30,000. 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
✓
$160,000
ALE = LEF × LM. LEF = TEF × V = 10 × 0.2 = 2. LM = Primary Loss + Secondary Loss = $50,000 + $30,000 = $80,000. ALE = 2 × $80,000 = $160,000.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
$100,000
Why it's wrong here
This might be a guess; it does not match any correct step.
- ✗
$800,000
Why it's wrong here
This incorrectly multiplies TEF (10) by total loss ($80,000) without considering vulnerability.
- ✓
$160,000
Why this is correct
Correct calculation: LEF=2, LM=$80,000, ALE=$160,000.
- ✗
$80,000
Why it's wrong here
This is the Loss Magnitude, not the 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.