SLE = AV (asset value) x EF

ALE = SLE x ARO

 Annualised loss expectancy (ALE) = The cost of loss due to a risk over a year
 Single loss expectancy (SLE) = A dollar figure assigned to single event
 Exposure factor (EF) = The percentage of loss a realised threat event would have
on a specific asset
 Annualised rate of occurance (ARO) = A number that represents the estimated
frequency of an occurance of an expected threat

Risk = Threat x vulnerability

 Threat = A potentially negative occurrence

 Vulnerability = A weakness in a system
 Risk = A matched threat and vulnerability
 Safeguard = A measure taken to reduce risk
 Total cost of ownership (TCO)= The cost of the safeguard
 Return on investment (ROI) = Money saved by deploying a safeguard