On Risk Management, Business Continuity, and Security
|23 February, 2018|
The Single Loss Expectancy (SLE) is the expected monetary loss every time a risk occurs. The Single Loss Expectancy, Asset Value (AV), and exposure factor (EF) are related by the formula:
SLE = AV * EF
Introducing this conceptual breakdown of Single Loss Expectancy into Asset Value and Exposure Factor allows us to adjust the two terms independently: Asset Value may vary with inflation, market changes, etc. while introducing preventive measures may enable us to reduce an Exposure Factor.
See Also: Annualized Loss Expectancy.
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