SLE Formula:
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Single Loss Expectancy (SLE) is a risk assessment metric that represents the expected monetary loss from a single occurrence of a specific threat. It's calculated by multiplying the asset value by the exposure factor, which represents the percentage of asset value lost in a single incident.
The calculator uses the SLE formula:
Where:
Explanation: The formula quantifies the potential financial impact of a single security incident on a specific asset.
Details: SLE is a fundamental component of quantitative risk analysis. It helps organizations prioritize security investments, calculate Annualized Loss Expectancy (ALE), and make informed decisions about risk mitigation strategies.
Tips: Enter the asset value in dollars and the exposure factor as a decimal between 0 and 1 (e.g., 0.25 for 25% loss). Both values must be valid (AV > 0, EF between 0-1).
Q1: How is SLE different from ALE?
A: SLE represents loss from a single incident, while Annualized Loss Expectancy (ALE) estimates expected annual loss (ALE = SLE × ARO, where ARO is Annual Rate of Occurrence).
Q2: What factors influence exposure factor?
A: EF depends on the asset's vulnerability, threat impact, and existing controls. It's typically estimated based on historical data, expert opinion, or industry benchmarks.
Q3: How accurate are SLE calculations?
A: Accuracy depends on the precision of AV and EF estimates. These are often approximations, so SLE should be treated as an estimate rather than an exact prediction.
Q4: Can SLE be used for non-financial assets?
A: While primarily financial, SLE can be adapted for reputation, operational, or other impacts by assigning monetary values to non-financial consequences.
Q5: What are common challenges in SLE calculation?
A: Challenges include accurately valuing intangible assets, determining realistic exposure factors, and accounting for cascading effects across interconnected systems.