What is the formula for calculating Single Loss Expectancy (SLE)?

What is the formula for calculating Single Loss Expectancy (SLE)?

• A. SLE = Asset Value (AV) + Exposure Factor
• B. SLE = AV * EF * 2
• C. SLE = Asset Value (AV) * Exposure Factor (EF)
• D. SLE = Exposure Factor (EF) / Asset Value (AV)

Answer: (C)

Single Loss Expectancy measures the monetary impact of a single incident on an asset. It is found by multiplying the asset’s value by the portion of the asset that would be lost in the incident, called the exposure factor. So the formula is SLE = Asset Value × Exposure Factor. For example, if an asset is worth $100,000 and the exposure factor is 0.25 (25%), the SLE is $25,000. The exposure factor is used as a decimal (convert from a percentage if needed). This value is later used with the annualized rate of occurrence to compute the Annualized Loss Expectancy.

Single Loss Expectancy measures the monetary impact of a single incident on an asset. It is found by multiplying the asset’s value by the portion of the asset that would be lost in the incident, called the exposure factor. So the formula is SLE = Asset Value × Exposure Factor. For example, if an asset is worth $100,000 and the exposure factor is 0.25 (25%), the SLE is $25,000. The exposure factor is used as a decimal (convert from a percentage if needed). This value is later used with the annualized rate of occurrence to compute the Annualized Loss Expectancy.