What does SLE stand for in risk management?

What does SLE stand for in risk management?

• A. Single Loss Event
• B. Single Loss Expectancy
• C. System Loss Event
• D. Severity Level Event

Answer: (B)

Single Loss Expectancy is the expected monetary loss from a single occurrence of a risk event. In quantitative risk analysis, SLE is used with the Annualized Rate of Occurrence to calculate the Annualized Loss Expectancy, linking the potential impact of one incident to how often it might happen. SLE itself is typically Asset Value multiplied by Exposure Factor, so it represents the dollar amount at risk in one event. For example, if an asset is worth $100,000 and the exposure factor is 30%, the SLE is $30,000. This is why Single Loss Expectancy is the correct term. Other options describe the event or other concepts, but they’re not the standard term for the monetary impact of a single incident.

Single Loss Expectancy is the expected monetary loss from a single occurrence of a risk event. In quantitative risk analysis, SLE is used with the Annualized Rate of Occurrence to calculate the Annualized Loss Expectancy, linking the potential impact of one incident to how often it might happen. SLE itself is typically Asset Value multiplied by Exposure Factor, so it represents the dollar amount at risk in one event. For example, if an asset is worth $100,000 and the exposure factor is 30%, the SLE is $30,000. This is why Single Loss Expectancy is the correct term. Other options describe the event or other concepts, but they’re not the standard term for the monetary impact of a single incident.