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CRISC Practice Question: Match each risk analysis formula to its component.

Match each risk analysis formula to its component.

Drag a concept onto its matching description — or click a concept then click the description.

Concepts
Matches

Asset value × exposure factor

Annual frequency of occurrence

SLE × ARO

Percentage of asset lost per incident

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

✓

SLE: Single Loss Expectancy (calculated as AV × EF)

In quantitative risk analysis, ALE = SLE × ARO, SLE = AV × EF, AV is asset value, EF is percentage loss, and ARO is frequency per year. Common confusions involve swapping EF and ARO definitions.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✓

    SLE: Single Loss Expectancy (calculated as AV × EF)

    Why this is correct

    SLE is correctly defined as the product of Asset Value and Exposure Factor.

  • ✓

    ALE: Annual Loss Expectancy (calculated as SLE × ARO)

    Why this is correct

    ALE is correctly defined as the product of Single Loss Expectancy and Annualized Rate of Occurrence.

  • ✓

    AV: Asset Value (the monetary value of an asset)

    Why this is correct

    AV is correctly defined as the monetary value assigned to an asset.

  • ✗

    EF: Exposure Factor (the expected frequency of occurrence per year)

    Why it's wrong here

    Incorrect — EF is the percentage of asset value lost from an incident, not the frequency. ARO is the frequency.

  • ✗

    ARO: Annualized Rate of Occurrence (the percentage of asset value lost from an incident)

    Why it's wrong here

    Incorrect — ARO is the expected frequency of occurrence per year, not a percentage of loss.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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