Single-loss expectancy (SLE) is the monetary value expected from the occurrence of a risk on an asset. It is related to
risk management and
risk assessment
Broadly speaking, a risk assessment is the combined effort of:
# identifying and analyzing potential (future) events that may negatively impact individuals, assets, and/or the environment (i.e. hazard analysis); and
# making judgments "on the ...
.
Single-loss expectancy is mathematically expressed as:
Where the
exposure factor 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 by two thirds, the exposure factor value is 0.66. If the asset is completely lost, the exposure factor is 1.
The result is a monetary value in the same unit as the single-loss expectancy is expressed (euros, dollars, yens, etc.):
exposure factor is the subjective, potential percentage of loss to a specific asset if a specific threat is realized. The exposure factor is a subjective value that the person assessing risk must define.
See also
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Information assurance Information assurance (IA) is the practice of assuring information and managing risks related to the use, processing, storage, and transmission of information. Information assurance includes protection of the integrity, availability, authenticity, ...
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Risk assessment
Broadly speaking, a risk assessment is the combined effort of:
# identifying and analyzing potential (future) events that may negatively impact individuals, assets, and/or the environment (i.e. hazard analysis); and
# making judgments "on the ...
*
Annualized loss expectancy
References
External links
Information Security Risk Analysis Paper from Digital Threat
Data security
Financial risk
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