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Risky Thinking
On Risk Management, Business Continuity, and Security
25 February, 2017
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Annualized Rate of Occurrence (Definition)

The probability that a risk will occur in a particular year.

For example, if insurance data suggests that a serious fire is likely to occur once in 25 years, then the annualized rate of ocurrence is 1/25 = 0.04.

See Also: Annualized Loss Expectancy.

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