If you calculate SLE to be $25,000 and that there will be one occurrence every four years (ARO), then the ALE is $40,000.
<h3>What is Single-loss expectancy (SLE)?</h3>
A expected monetary decline each moment an asset is at risk is referred to as single-loss expectancy (SLE). It is a term that is most frequently used during risk analysis and attempts to assign a monetary value to each individual threat.
Quantitative risk analysis predicts the likelihood of certain risk outcomes as well as their approximate monetary cost using relevant, verifiable data.
IT professionals must consider a wide range of risks, including the following:
- Errors caused by humans
- Cyber attacks, unauthorised data disclosure, or data misuse are examples of hostile action.
- Errors in application
- System or network failures
- Physical harm caused by fire, natural disasters, or vandalism.
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