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Glossary · Management

ARO

Annualized Rate of Occurrence

In plain language

How many times per year a particular bad event is expected to happen.

The metaphor

Like counting how many winters out of ten a road has flooded.

Going deeper

How it works

  • Comes from history, industry data and judgement.
  • A value of 0.1 means once in ten years.
  • Multiplied by the cost of one event, it gives the yearly loss.
  • Different threats get different values.

How WILDCARD handles it

vCIO helps estimate these figures for the risks that matter to your business.

In practice
  • An office rates a break-in as once in five years.
  • A ransomware event is rated once in twenty.
  • A fire is rated once in a hundred.

A question owners ask

Where do the numbers come from?

From past incidents, published reports and professional judgement.

Where WILDCARD handles this
✨
vCIO
  • Fractional CIO on retainer
  • Moonlight, Sunlight, Starlight tiers
  • Credits for single outputs
Start with vCIO
Related terms
AIArtificial IntelligenceALEAnnualized Loss ExpectancyAUPAcceptable Use PolicyBCPBusiness Continuity PlanningBIABusiness Impact AnalysisCARCorrective Action ReportCIOChief Information OfficerCIRTComputer Incident Response Team

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