Explanation
= Annual loss expectancy (ALE) is the most important criterion when deciding whether to accept residual risk, because it represents the expected monetary loss for an asset due to a risk over a one-year period. ALE is calculated by multiplying the annual rate of occurrence (ARO) of a risk event by the single loss expectancy (SLE) of the asset. ARO is the estimated frequency of a risk event occurring within a one-year period, and SLE is the estimated cost of a single occurrence of a risk event. ALE helps to compare the cost and benefit of different risk responses, such as avoidance, mitigation, transfer, or acceptance. Risk acceptance is appropriate when the ALE is lower than the cost of other risk responses, or when the risk is unavoidable or acceptable within the organization's risk appetite and tolerance. ALE also helps to prioritize the risks that need more attention and resources.
References = CISM Review Manual, 16th Edition, Chapter 2: Information Risk Management, Section: Risk Assessment, page 831; CISM Review Questions, Answers & Explanations Manual, 10th Edition, Question 22, page 242

Explanation/Reference:
Explanation:
Regulatory compliance can be a standalone driver for an information security governance measure. No further analysis nor justification is required since the entity has no choice in the regulatory requirements.
Buy-in from business managers must be obtained by the information security manager when an information security governance measure is sought based on its alignment with industry best practices.
Business continuity investment needs to be justified by business impact analysis. When an information security governance measure is sought based on qualitative business benefits, further analysis is required to determine whether the benefits outweigh the cost of the information security governance measure in question.