# Chapter 2 – Personnel Security and Risk Management Concepts

### Quantitative Risk Analysis

* Probability: Annualized Rate of Occurrence (ARO)
* Single Impact: Single Loss Expectancy (SLE)
SLE ($) = Asset Value ($) x Exposure Factor (%)

* Annual impact: Annual Loss Expectancy (ALE)
ALE ($) = SLE x ARO

SLE = AV x EF
ALE = SLE x ARO


