Calculation of Annualized Loss Expectancy (ALE) Name Tutor Institution Course Date Calculation of ALE Business organizations are subjected to various types of risks and uncertainties that present a barrier to the full realization of the firm’s primary objective. One of the biggest challenges that a business enterprise faces are unexpected losses. With the aim of explaining how employees can manage risks business continuity managers have the responsibilities of explaining to the employees on the Annualized Loss Expectancy (ALE). To enhance employees understanding on the ALE it calls upon Loss Expectancy is that it can be applied directly to project benefit analysis chart. For instance if a business risk shows ALE of five thousand dollars it is not worth spending more than ten thousand dollars annually on a measure that will eliminate the same risk. When making use of the formula in calculating annualized loss expenditure there exists a high probability of considerable variance in the substantial loss. Works cited Broder James F. Risk Analysis and the Security Survey Instructor's Manual. Burlington: Elsevier Science 2010. Internet resource. [...]
As the Business Continuity Manager, you assign responsibilities for the completion of the Business Impact Analysis to each member of your team. You explain to your staff that they will be responsible to calculate the annual loss expectancy (ALE) of assigned risks. Your staff looks at you bewildered, so you need to explain the formula to them and how to use it. What explanation would you give so that your staff understands that formula? Provide an example of how to use the formula. Develop a matrix using the formula as part of your example.