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ISACA Certified in Risk and Information Systems Control · Isaca
Select one answer.
Written by other learners. Comments can disagree with the marked answer — check the official documentation when in doubt.
B is not wrong because ALE focuses on direct financial losses, not indirect impacts like reputational damage or customer trust.
D. can be used in a cost-benefit analysis. The annualized loss expectancy (ALE) method of risk analysis is a quantitative approach that calculates the expected annual loss from a specific risk scenario. It is often used in conjunction with a cost-benefit analysis to assess whether the costs of implementing risk controls or mitigation measures are justified based on the potential reduction in expected losses. By comparing the ALE before and after implementing controls, an organization can make informed decisions about the cost-effectiveness of risk management strategies. So, option D is the correct answer.
going with D