Cary is working on a risk management project and must determine the degree of damage to a manufacturing facility downtown in the event of a flood. This degree of damage is referred to as:
A.
Its depreciated value
B.
Its exposure factor
C.
Its risk factor
D.
Its single loss expectancy
Explanation:
An asset’s exposure factor (EF) is its degree or percent of damage that would be
realized in the event of a disaster. EF is used to calculate a single loss
expectancy.