Single Loss Expectancy (SLE) represents an organization’s loss from a single threat. Which of the
following formulas best describes the Single Loss Expectancy (SLE)?
A.
SLE = Asset Value (AV) * Exposure Factor (EF)
B.
SLE = Annualized Loss Expectancy (ALE) * Annualized Rate of Occurrence (ARO)
C.
SLE = Annualized Loss Expectancy (ALE) * Exposure Factor (EF)
D.
SLE = Asset Value (AV) * Annualized Rate of Occurrence (ARO)
Explanation:
Single Loss Expectancy is a term related to Risk Management and Risk
Assessment. It can be defined as the monetary value expected from the occurrence of a risk on an
asset. It is mathematically expressed as follows: Single Loss Expectancy (SLE) = Asset Value
(AV) * Exposure Factor (EF) where the Exposure Factor is represented in the impact of the risk
over the asset, or percentage of asset lost. As an example, if the Asset Value is reduced two
thirds, the exposure factor value is .66. If the asset is completely lost, the Exposure Factor is 1.0.
The result is a monetary value in the same unit as the Single Loss Expectancy is expressed.