What does SLE stand for in risk management?

What does SLE stand for in risk management?

• A. Annual Rate of Occurrence
• B. Loss Expectancy
• C. Single Loss Expectancy
• D. Single Loss Event

Answer: (C)

Single Loss Expectancy is the monetary value of the damage from one adverse event affecting an asset. It converts the impact of a single incident into a dollar amount, usually calculated as Asset Value times the Exposure Factor (the portion of the asset lost in that event). This lets you quantify how costly a single incident would be and, when combined with how often such events occur (the Annual Rate of Occurrence), to estimate expected yearly losses (ALE) for decision-making on controls and protections. The other terms describe frequency or are not standard terminology for the loss amount per event.

Single Loss Expectancy is the monetary value of the damage from one adverse event affecting an asset. It converts the impact of a single incident into a dollar amount, usually calculated as Asset Value times the Exposure Factor (the portion of the asset lost in that event). This lets you quantify how costly a single incident would be and, when combined with how often such events occur (the Annual Rate of Occurrence), to estimate expected yearly losses (ALE) for decision-making on controls and protections. The other terms describe frequency or are not standard terminology for the loss amount per event.