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Read this page and watch the video to learn more about the purpose of risk management and the four stages of the risk management process. Before you move on, make sure you have a good understanding of the formulas, and that you are able to use the formulas on this page to calculate single loss expectancy (SLE), annual rate of occurrence (ARO), and annual loss expectancy (ALE).
Instruction
Single Loss Expectancy (SLE)
SLE is the estimate of the amount of damage that an asset will suffer due to a single incident.
Asset categories include people, facilities, equipment, materials, information, activities, and operations.
Asset categories include people, facilities, equipment, materials, information, activities, and operations.
Figure 9 – Single Loss Expectancy calculation
The following formula is used to calculate the single loss expectancy:
Single Loss Expectancy = Asset Value * Exposure Factor
Exposure Factor (EF) is expressed as a percentage of the asset value. If loss can be limited to one type, the impact on the asset by percentage of the asset value lost can be determined.