- A
SLE = $20,000, ALE = $10,000
Correct calculation: SLE = $50,000 * 0.4 = $20,000; ALE = $20,000 * 0.5 = $10,000.
- B
SLE = $50,000, ALE = $25,000
Why wrong: SLE is AV * EF, not just AV.
- C
SLE = $10,000, ALE = $5,000
Why wrong: SLE should be $20,000, not $10,000.
- D
SLE = $20,000, ALE = $40,000
Why wrong: ALE would be $20,000 * 0.5 = $10,000, not $40,000.
Question 93 of 1,000
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.
An organization is calculating the Annualized Loss Expectancy (ALE) for a server. The Asset Value (AV) is $50,000, the Exposure Factor (EF) is 40%, and the Annualized Rate of Occurrence (ARO) is 0.5. What is the Single Loss Expectancy (SLE) and 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
✓
SLE = $20,000, ALE = $10,000
The Single Loss Expectancy (SLE) is calculated as Asset Value (AV) × Exposure Factor (EF) = $50,000 × 0.40 = $20,000. The Annualized Loss Expectancy (ALE) is then SLE × Annualized Rate of Occurrence (ARO) = $20,000 × 0.5 = $10,000. This matches option A exactly.
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.
- ✓
SLE = $20,000, ALE = $10,000
Why this is correct
Correct calculation: SLE = $50,000 * 0.4 = $20,000; ALE = $20,000 * 0.5 = $10,000.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
SLE = $50,000, ALE = $25,000
Why it's wrong here
SLE is AV * EF, not just AV.
- ✗
SLE = $10,000, ALE = $5,000
Why it's wrong here
SLE should be $20,000, not $10,000.
- ✗
SLE = $20,000, ALE = $40,000
Why it's wrong here
ALE would be $20,000 * 0.5 = $10,000, not $40,000.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Cisco often tests the distinction between SLE and ALE formulas, and the trap here is that candidates may forget to apply the EF to the AV when calculating SLE, or they may invert the ARO (e.g., using 2 instead of 0.5) when computing ALE.
Detailed technical explanation
How to think about this question
The SLE represents the expected monetary loss from a single occurrence of a risk event, derived by multiplying the asset's value by the percentage of damage (EF). The ALE annualizes this risk by multiplying SLE by the expected frequency (ARO), enabling cost-benefit analysis for controls. In practice, ARO values below 1 (like 0.5) indicate events expected less than once per year, such as a major server failure every two years, which is common in risk assessments for critical infrastructure.
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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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: SLE = $20,000, ALE = $10,000 — The Single Loss Expectancy (SLE) is calculated as Asset Value (AV) × Exposure Factor (EF) = $50,000 × 0.40 = $20,000. The Annualized Loss Expectancy (ALE) is then SLE × Annualized Rate of Occurrence (ARO) = $20,000 × 0.5 = $10,000. This matches option A exactly.
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.
About these practice questions
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Last reviewed: Jul 4, 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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