Question 17
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The board asks for a quantifiable estimate of potential loss from a data breach. Which calculation should you provide?
A. Annualized Loss Expectancy (ALE)
B. Control Effectiveness Index (CEI)
C. Privacy Impact Assessment (PIA)
D. Single Point of Failure (SPF)
Answer: A. Annualized Loss Expectancy (ALE)
ALE estimates annualized financial risk exposure and is derived from asset value, exposure factor, and occurrence rate.