Single Loss Expectancy (SLE)
- How much loss is experienced during one negative incident?
- Multiply Asset Value (AV) by the exposure factore (EF)
- $24,000 * 12.5% = $3,000

Annualized Rate of Occurrence (ARO)
- Expected number of yearly occurrences

Annualized Loss Expectancy (ALE)
- Total yearly cost of bad things happinging 
- SLE * ARO
- $,3000 * 2 = $6,000 per year