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| Home / Risk Glossary / Exposure Factor | 4 February, 2012 | |
Exposure Factor (Definition)The proportion of an asset's value that is likely to be destroyed by a particular risk, expressed as a percentage. For example, if the value of a building would be reduced from $1,000,000 to $250,000 by a fire, the exposure factor for the risk of fire to the building is 75%. See Also: Exposure, Single Loss Expectancy. Risky Thinking Newsletter Are you responsible for Business Continuity, Disaster Recovery, or Risk Management in your organization? Then you may wish to receive a free subscription to the the monthly Risky Thinking Newsletter. It contains news, opinions and articles of interest to people working in these areas. View a sample issue, or click here to subscribe. Recent articles have included: A fast-food restaurant is not a good place for a discussion on risks. Common industry practices can amplify otherwise miniscule risks, and the restaurant owner may well be the victim of the risk management practices of his suppliers.
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