Question

An enterprise security analyst is performing a quantitative risk assessment on an internal source code repository server housing proprietary intellectual property. The repository server has an estimated Asset Value ($AV$) of $\$400,000$. Threat intelligence reports indicate that a major security breach would result in an Exposure Factor ($EF$) of $25\%$ ($0.25$). Based on historical incident data, such an exposure event is expected to occur once every two and a half years, establishing an Annual Rate of Occurrence ($ARO$) of $0.40$. What is the Annual Loss Expectancy ($ALE$) for this repository server?