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NEW QUESTION: 1
The risk manager at a small bank wants to use quantitative analysis to determine the ALE of running a business system at a location which is subject to fires during the year. A risk analyst reports to the risk manager that the asset value of the business system is $120,000 and, based on industry data, the exposure factor to fires is only 20% due to the fire suppression system installed at the site. Fires occur in the area on average every four years. Which of the following is the ALE?
A. $30,000
B. $24,000
C. $6,000
D. $96,000
Answer: C


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