Which of the following best describes SLE in risk management?

Single Loss Expectancy (SLE) is a crucial concept in risk management that quantifies the potential financial loss from a single incident of risk exposure. It is calculated by multiplying the asset value by the exposure factor, which represents the percentage of loss that a particular threat would likely cause to that asset. This measurement helps organizations assess their potential losses and develop strategies to mitigate risk effectively.

By understanding SLE, organizations can prioritize risk management efforts, allocate resources efficiently, and budget for potential losses. This financial aspect of risk assessment enables informed decision-making regarding investments in security controls, insurance options, and risk mitigation measures. In essence, SLE provides a tangible figure that organizations can use to gauge the severity of risks and plan accordingly.