Question 1easymultiple choice
Full question →- A
$25,000
Why wrong: Incorrect multiplication.
- B
$1,000
Correct calculation.
- C
$5,000
Why wrong: That is the SLE, not ALE.
- D
$100
Why wrong: Incorrect multiplication.
Question 468 of 504
SSCP Risk Identification, Monitoring and Analysis Practice Question
This SSCP practice question tests your understanding of risk identification, monitoring and analysis. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A risk manager is calculating the annualized loss expectancy (ALE) for a server. The single loss expectancy (SLE) is $5,000 and the annualized rate of occurrence (ARO) is 0.2. What is the 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
✓
$1,000
The annualized loss expectancy (ALE) is calculated by multiplying the single loss expectancy (SLE) by the annualized rate of occurrence (ARO). Here, SLE = $5,000 and ARO = 0.2, so ALE = $5,000 × 0.2 = $1,000. This represents the expected annual financial loss from the server risk.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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 multiplication.
- ✓
$1,000
Why this is correct
Correct calculation.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
$5,000
Why it's wrong here
That is the SLE, not ALE.
- ✗
$100
Why it's wrong here
Incorrect multiplication.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the ALE formula by dividing SLE by ARO instead of multiplying, leading to the inflated $25,000 figure in option A.
Detailed technical explanation
How to think about this question
ALE is a key quantitative risk analysis metric defined in standards like NIST SP 800-30 and ISO 31000. The ARO of 0.2 means the event is expected to occur once every five years on average. In practice, risk managers use ALE to prioritize controls; for example, if a countermeasure costs less than $1,000 annually, it is cost-justified to implement.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A security analyst at a medium-sized enterprise encounters this scenario during an investigation or architecture review. The correct answer reflects best practice for the specific threat or control described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Security exam questions test whether you can match controls to threats in context — not just recall definitions.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this SSCP question test?
Risk Identification, Monitoring and Analysis — This question tests Risk Identification, Monitoring and Analysis — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: $1,000 — The annualized loss expectancy (ALE) is calculated by multiplying the single loss expectancy (SLE) by the annualized rate of occurrence (ARO). Here, SLE = $5,000 and ARO = 0.2, so ALE = $5,000 × 0.2 = $1,000. This represents the expected annual financial loss from the server risk.
What should I do if I get this SSCP question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 25, 2026
This SSCP practice question is part of Courseiva's free ISC2 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 SSCP exam.
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