The Annual Loss Expectancy (ALE) is most useful in determining whether the long-term cost to transfer a risk is less than the impact of the risk. ALE is calculated by multiplying the Single Loss Expectancy (SLE) by the Annualized Rate of Occurrence (ARO), which provides an estimate of the annual expected loss due to a specific risk, making it valuable for long-term financial planning and risk management decisions.References:
CompTIA Security+ SY0-701 course content and official CompTIA study resources.