Annualized Loss Expectancy is a feature of which risk score method?

Annualized Loss Expectancy is a feature of which risk score method?

• A. Residual
• B. Quantitative
• C. Qualitative
• D. Inherent

Answer: (B)

Annualized Loss Expectancy is a numeric, data-driven metric used in quantitative risk scoring. It expresses the expected yearly financial loss from a risk by multiplying the single loss expectancy (the monetary value of a loss from one event) by the annualized rate of occurrence (how often the event is expected to happen per year). Because it relies on concrete numbers and financial values, it belongs to quantitative risk scoring rather than qualitative methods that categorize risk with words like high/medium/low. It isn’t tied to whether the risk is inherent or residual after controls—that distinction describes stages, not the scoring approach. So ALE is a feature of quantitative risk scoring.

Annualized Loss Expectancy is a numeric, data-driven metric used in quantitative risk scoring. It expresses the expected yearly financial loss from a risk by multiplying the single loss expectancy (the monetary value of a loss from one event) by the annualized rate of occurrence (how often the event is expected to happen per year). Because it relies on concrete numbers and financial values, it belongs to quantitative risk scoring rather than qualitative methods that categorize risk with words like high/medium/low. It isn’t tied to whether the risk is inherent or residual after controls—that distinction describes stages, not the scoring approach. So ALE is a feature of quantitative risk scoring.