Question

A financial enterprise is conducting a quantitative risk assessment on an internal database cluster. The asset value ($AV$) of the database cluster is estimated at $\$400,000$. Threat intelligence estimates that a single ransomware incident would result in an exposure factor ($EF$) of $0.15$ ($15\%$). Historical occurrence data indicates that such an incident is likely to occur once every four years, giving an annual rate of occurrence ($ARO$) of $0.25$. Which of the following is the estimated Annual Loss Expectancy ($ALE$) for this asset?