ARO estimates the frequency with which a specific threat is expected to occur in a year. It is a critical component of calculating Annual Loss Expectancy (ALE).
Why This is Correct:
ARO quantifies the likelihood of an event, allowing organizations to prioritize risk mitigation efforts effectively.
Why Other Options Are Incorrect:
A. SLE: Refers to the monetary loss from a single event.
B. EF: Represents the percentage of asset loss from a specific threat.
D. TP: Not a standard term in risk management frameworks.
References:
EC-Council highlights ARO as an essential metric for risk assessment and financial impact analysis in risk management frameworks.
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