GRC Engineering
Annualized Loss Expectancy (ALE)
The expected dollar value of loss from a specific risk scenario over one year, calculated as Loss Event Frequency multiplied by Loss Magnitude. ALE is the core output of a FAIR analysis, expressed as a probability-weighted range rather than a single point estimate.
From the library
The full analysis on Annualized Loss Expectancy (ALE).
The article is where the term meets the practitioner. Read how this concept actually shows up in audit, in remediation, and in the boardroom.
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