Exposure factor (EF), in
risk management
Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or probability of those risks occurring. Risks can come from various sources (i.e, Threat (sec ...
,
is the subjective, potential
percentage
In mathematics, a percentage () is a number or ratio expressed as a fraction (mathematics), fraction of 100. It is often Denotation, denoted using the ''percent sign'' (%), although the abbreviations ''pct.'', ''pct'', and sometimes ''pc'' are ...
of
loss
Loss may refer to:
*Economic loss
*Grief, an emotional response to loss
**Animal loss, grief over the loss of an animal
Mathematics, science, and technology
* Angular misalignment loss, power loss caused by the deviation from optimum angular al ...
to a specific
asset
In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that can b ...
if a
specific threat is realized.
It is usually applied in
IT risk
It or IT may refer to:
* It (pronoun), in English
* Information technology
Arts and media Film and television
* ''It'' (1927 film), a film starring Clara Bow
* '' It! The Terror from Beyond Space'', a 1958 science fiction film
* ''It!'' (1967 ...
assessment, but may be applied to quantifying
business risk more generally.
Exposure factor definition
capital.com
Per formula:
The exposure factor is usually a subjective value that the person assessing risk
In simple terms, risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that humans value (such as health, well-being, wealth, property or the environ ...
must define. It is represented in the impact of the risk over the asset, or percentage of asset lost. As an example, if the asset value is reduced two thirds, the exposure factor value is 0.66. If the asset is completely lost, the exposure factor is 1.0.
References
IT risk management
Risk management in business
Risk management
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