Which term denotes the loss amount expected per single loss event?

Which term denotes the loss amount expected per single loss event?

• A. Magniture of Impact (Risk Impact)
• B. Single Loss Expectancy (SLE)
• C. Exposure Factor (EF)
• D. Return on Investment (ROI)

Answer: (B)

Single Loss Expectancy is the monetary amount you expect to lose from one incident. It represents the loss incurred from a single event and is calculated by multiplying the asset value by the exposure factor (the portion of the asset that would be lost in the incident). For example, if an asset is valued at $100,000 and the exposure factor is 0.4, the SLE is $40,000. This measure helps quantify risk from a single event and feeds into broader risk calculations like annualized loss (SLE × ARO). The exposure factor describes the fraction of value lost, the magnitude of impact is a broader qualitative assessment, and ROI is a general financial metric not specific to incident losses.

Single Loss Expectancy is the monetary amount you expect to lose from one incident. It represents the loss incurred from a single event and is calculated by multiplying the asset value by the exposure factor (the portion of the asset that would be lost in the incident). For example, if an asset is valued at $100,000 and the exposure factor is 0.4, the SLE is $40,000. This measure helps quantify risk from a single event and feeds into broader risk calculations like annualized loss (SLE × ARO). The exposure factor describes the fraction of value lost, the magnitude of impact is a broader qualitative assessment, and ROI is a general financial metric not specific to incident losses.