Which term quantifies the financial impact of a single occurrence of a risk event?

Which term quantifies the financial impact of a single occurrence of a risk event?

• A. Annualized Loss Expectancy
• B. Exposure Factor
• C. Single Loss Expectancy
• D. Risk Exposure

Answer: (C)

Single Loss Expectancy measures the financial impact of a single occurrence of a risk event. It combines what the asset is worth with how much of that value is lost in one incident, using Asset Value multiplied by Exposure Factor. This directly answers the money you would lose if the event happens once. For context, Exposure Factor is the fraction of the asset value lost per event, and Asset Value is the total worth of the asset. Annualized Loss Expectancy, by contrast, multiplies the single-event loss by the expected number of events per year to give a yearly figure, and Risk Exposure is a broader term not specific to a single incident’s cost.

Single Loss Expectancy measures the financial impact of a single occurrence of a risk event. It combines what the asset is worth with how much of that value is lost in one incident, using Asset Value multiplied by Exposure Factor. This directly answers the money you would lose if the event happens once. For context, Exposure Factor is the fraction of the asset value lost per event, and Asset Value is the total worth of the asset. Annualized Loss Expectancy, by contrast, multiplies the single-event loss by the expected number of events per year to give a yearly figure, and Risk Exposure is a broader term not specific to a single incident’s cost.