What is the annualized loss expectancy for a tornado affecting Atwood Landing's data center?

To determine the annualized loss expectancy (ALE) for a tornado affecting Atwood Landing's data center, you need to understand that ALE is calculated using the formula:

ALE = Single Loss Expectancy (SLE) x Annual Rate of Occurrence (ARO).

The Single Loss Expectancy is the potential loss resulting from a single incident, and the Annual Rate of Occurrence reflects how often you expect such incidents to happen within a year.

In the context of a tornado, a lower ALE value indicates that while tornadoes can cause significant damage, the actual calculated risk for Atwood Landing’s data center might be relatively low, possibly due to the historical frequency of tornadoes in that area or effective disaster recovery plans in place.

If the ALE is determined to be $25,000, it suggests that, after considering SLE and ARO, the risk associated with tornadoes is managed effectively, potentially through mitigation strategies, insurance, or other resilience approaches. A lower ALE value also implies that while the impact (potential loss) from a tornado could be significant, the probability of it happening within a year is low enough to reduce the overall expected loss to this amount.

This understanding can guide decision-making about risk management strategies and budgeting for potential losses related to natural