What is the formula for calculating Single Loss Expectancy (SLE)?

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The formula for calculating Single Loss Expectancy (SLE) is determined by multiplying the asset value by the exposure factor. The asset value represents the total worth of the asset being assessed, while the exposure factor reflects the percent of the asset that would be lost if a specific risk event were to occur.

By using this multiplication, SLE quantifies the potential monetary impact of a single risk event on the asset. This is crucial for risk management and making informed decisions about security measures and cost-benefit analysis. Understanding the potential financial loss from risks helps organizations prioritize their security investments based on the value of assets at stake and the likelihood of different risks.

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