Final answer:
The term that identifies the amount of money a business expects to lose to a given risk each year is ARO (Annualized Rate of Occurrence).
Step-by-step explanation:
The correct term that identifies the amount of money a business expects to lose to a given risk each year is ARO or Annualized Rate of Occurrence.
ARO is a measure used in business risk management to quantify the likelihood of a risk event occurring within a given time frame.
For example, if a business estimates that it has a 20% chance of incurring a loss of $10,000 from a certain risk every year, the ARO for that risk would be $2,000 ($10,000 x 0.20).