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:


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:

If you are an industry professional, consider subscribing to the free Risky Thinking Newsletter for articles, insights, and commentary on risk, business continuity, and security. It's low volume: we don't send out the newsletter unless there is something interesting to say!

Errors or Omissions? Contact us and let us know!