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What is the average number of times that a specific risk is likely to be realized in a single year?.

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ARO (Annual incidence rate) is the average number of times a particular risk is likely to materialize in a year.

What is Annual incidence rate (ARO)?

Annual incidence, also known as ARO, refers to the expected frequency at which a risk or threat is expected. ARO is also commonly referred to as probabilistic determination.

How to calculate annual frequency?

The probability that a risk will materialize in a given year. For example, if insurance data indicates that a major fire is likely to occur once every 25 years, the annual frequency is 1/25 = 0.04.

What is the purpose of calculating the Annual Expected Loss (ALE)?

Annual Expected Loss is a calculation that helps determine the expected monetary loss of his assets in one year due to a particular risk. You can calculate ALE as part of your company's quantitative cost-benefit analysis for an investment or project idea.

To learn more about ALE visit:

https://brainly.com/question/23899634

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