Risk Assessment
Once you’ve identified the threats and vulnerabilities facing an organization, you should turn to a formal risk assessment process that identifies the priority of addressing each risk. You may choose to do this by performing either a quantitative or qualitative risk assessment.
NOTE
You calculate ALE by multiplying the SLE by the ARO with the following formula:
ALE = SLE × ARO
Using the database with 1,000 records discussed above as an example, the SLE is $50,000. If we expect that the database will be compromised twice per year, the ARO is 2, and the ALE is $100,000:
$50,000 × ...
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