In risk management, which concept represents the monetary loss expected from a single incident?

• A. Annual Rate of Occurrence
• B. Security Loss Expectancy
• C. Single Loss Expectancy
• D. Single Loss Event

Answer: (C)

Single Loss Expectancy measures the monetary loss that would result from one incident affecting an asset. It captures the impact of a single event, not how often it happens or the yearly total. The value is found by multiplying the asset’s value by the exposure factor (the portion of the asset lost in that incident). For example, an asset valued at $100,000 with a 40% exposure factor would have an SLE of $40,000. This is distinct from frequency-based metrics like the annualized rate of occurrence, which tells you how often incidents occur in a year, or from terms used to describe yearly losses (often referred to as Security Loss Expectancy or ALE). A Single Loss Event is simply describing an incident, not its monetary impact quantified as a single-event loss.