Single loss expectancy
Encyclopedia
Single Loss Expectancy is a term related to Risk Management
and Risk Assessment
. It can be defined as the monetary value expected from the occurrence of a risk on an asset.
It is mathematically expressed as:
Where the Exposure Factor
is represented in the impact of the risk over the asset, or percentage of asset lost. As an example, if the Asset Value is reduced two thirds, the exposure factor value is .66. If the asset is completely lost, the Exposure Factor is 1.0.
The result is a monetary value in the same unit as the Single Loss Expectancy is expressed (euros, dollars, yens, etc):
Risk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
and Risk Assessment
Risk assessment
Risk assessment is a step in a risk management procedure. Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat...
. It can be defined as the monetary value expected from the occurrence of a risk on an asset.
It is mathematically expressed as:
Where the Exposure Factor
Exposure Factor
Exposure Factor is the subjective, potential percentage of loss to a specific asset if a specific threat is realized. The exposure factor is a subjective value that the person assessing risk must define....
is represented in the impact of the risk over the asset, or percentage of asset lost. As an example, if the Asset Value is reduced two thirds, the exposure factor value is .66. If the asset is completely lost, the Exposure Factor is 1.0.
The result is a monetary value in the same unit as the Single Loss Expectancy is expressed (euros, dollars, yens, etc):