Single Loss Expectancy SLE is calculated by - SHRM-CP Practice Questions

Single loss expectancy sle is calculated by - SHRM-CP Practice Questions

Question

Single Loss Expectancy (SLE) is calculated by:

Answers

Multiplying asset value by the annual rate of occurrence (ARO)
Adding all potential losses associated with a risk event
Dividing total losses by the number of incidents
correct

Multiplying asset value by the exposure factor (percentage loss)

Explanation

The correct answer is D

Single Loss Expectancy (SLE) is a key metric in risk management that quantifies the expected monetary loss when a specific risk event occurs. The formula for calculating SLE is:

SLE=Asset Value×Exposure Factor

Where:

Asset Value (AV) is the total value of the asset at risk.
Exposure Factor (EF) is the percentage of the asset's value that is expected to be lost if the risk materializes.

This calculation provides organizations with an estimate of potential losses associated with specific risks, enabling them to prioritize risk management efforts effectively. The other options do not accurately describe how SLE is calculated, making option D the correct choice.

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