Which of the following is a valid formula for calculating the ALE?
A. Total risk + controls gap
B. Vulnerabilities & Asset Value & Risk
C. AV x EF x ARO
D. 802.1x + x.500
The correct answer is C.
Domain: 2.1. The ALE (annualized loss expectancy) is calculated by combining the AV (asset value) with EF (exposure factor) with ARO (annualized rate of occurrence).