What are the four values leveraged for the Inherent and Residual Risk Score Types?

• A. Impact, Probability, SLE, ARO
• B. Impact, Likelihood, SLE, ALE
• C. Impact, Likelihood, SLE, Score
• D. Impact, Likelihood, SLE, ARO

Answer: (D)

In risk scoring for IRM, you evaluate both the severity of an event and how often it could happen, and you also bring in financial context to express potential losses over time. The four values used for the Inherent and Residual Risk Score Types are Impact, Likelihood, SLE, and ARO.

Impact represents how severe the consequence would be if the event occurs, while Likelihood (probability) indicates how likely it is to happen. SLE, or Single Loss Expectancy, is the monetary loss if that event happens once. ARO, the Annualized Rate of Occurrence, describes how often events are expected to occur per year. Together, SLE and ARO enable you to compute ALE (Annualized Loss Expectancy = SLE × ARO), giving an annualized financial view of risk that supports comparing and prioritizing risks, including residual risk after controls are applied. That combination—Impact, Likelihood, SLE, and ARO—is what the four values for these score types rely on.