Question

Quizlet, In a security review meeting, you are asked to calculate the single loss expectancy (SLE) of an enterprise building worth $100,000,000, 75% of which is likely to be destroyed by a flood. Flood insurance data suggest that a severe flood is likely to occur once every 100 years. Which formula should you use to calculate the SLE

Answer 1

The formula that should be use to calculate the SLE will be SLE = 100,000,000 × 0.75

What is the Single-loss expectancy?

Single-loss expectancy is the monetary value expected from the occurrence of a risk on an asset. This is related to risk management and risk assessment where the exposure factor is represented in the impact of the risk over the asset, or percentage of asset lost.

The Single Loss Expectancy is used for Risk Management and it is the expected monetary loss when a risk occurs.

The  Single Loss Expectancy is related to Asset Value a exposure Factor. The formula used to compute the SLE is single Loss Expectancy (SLE) = Asset Value (AV) × Exposure Factor (EF)

In the given problem the asset value of the enterprise building is $100,000,000 & the exposure factor 75%.

So the formula used to calculate the Single Loss Expectancy (SLE) is

SLE = 100,000,000 × 0.75.

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Complete question:

a. 100,000,000 * 0.75/.01

b. 100,000,000/100 * 0.75

c. 100,000,000/0.75 * 100

d. 100,000,000 * 0.75