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Home / Risk Glossary / Exposure Factor		12 May, 2008

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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.

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