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Risky Thinking
On Risk Management, Business Continuity, and Security
27 May, 2017
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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.

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