How is SLE calculated?

How is SLE calculated?

• A. Asset retirement value multiplied by the exposure factor
• B. Cost of the asset multiplied by the exposure factor
• C. Exposure factor multiplied by the asset value
• D. Asset value divided by the exposure factor

Answer: (B)

Single loss expectancy measures the amount you stand to lose from one incident affecting an asset. It is found by multiplying the asset’s value by the exposure factor, which represents the portion of the asset that would be lost if the threat materializes. In practice, the asset’s value is often described as its cost to replace or its overall value, so using the cost of the asset times the exposure factor expresses the same idea. For example, if an asset costs $100,000 and the exposure factor is 0.25, the SLE is $25,000. The other options don’t fit because they either use a value not typically involved in this calculation (asset retirement value) or involve division, which would not reflect the expected loss from a single incident.

Single loss expectancy measures the amount you stand to lose from one incident affecting an asset. It is found by multiplying the asset’s value by the exposure factor, which represents the portion of the asset that would be lost if the threat materializes. In practice, the asset’s value is often described as its cost to replace or its overall value, so using the cost of the asset times the exposure factor expresses the same idea. For example, if an asset costs $100,000 and the exposure factor is 0.25, the SLE is $25,000. The other options don’t fit because they either use a value not typically involved in this calculation (asset retirement value) or involve division, which would not reflect the expected loss from a single incident.