ARL Logo
Risky Thinking
On Risk Management, Business Continuity, and Security
19 September, 2017
Is your Business Continuity Plan ready for a Mobile World?
With Plan424 it can be.

Single Loss Expectancy (Definition)

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.

You are welcome to use these definitions for any purpose provided that an acknowledgement is made
to www.riskythinking.com and (if you're using HTML) you provide a link back to this site.

[ Back to Risk Glossary ]

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:

When does key person insurance make sense? A look at some of the reasons why Key Person insurance is not always a good risk management strategy. Read more...

© Albion Research Ltd. 2017