CAS-002 · Question #829
A system worth $100,000 has an exposure factor of eight percent and an ARO of four. Which of the following figures is the system's SLE?
The correct answer is B. $8,000. SLE (Single Loss Expectancy) is calculated as Asset Value multiplied by Exposure Factor, representing the expected monetary loss from one occurrence of a threat event.
Question
A system worth $100,000 has an exposure factor of eight percent and an ARO of four. Which of the following figures is the system's SLE?
Options
- A$2,000
- B$8,000
- C$12,000
- D$32,000
How the community answered
(43 responses)- A5% (2)
- B93% (40)
- C2% (1)
Why each option
SLE (Single Loss Expectancy) is calculated as Asset Value multiplied by Exposure Factor, representing the expected monetary loss from one occurrence of a threat event.
$2,000 does not result from any standard risk quantification formula applied to the values given and has no basis in the SLE, ALE, or ARO calculations.
SLE = Asset Value x Exposure Factor = $100,000 x 0.08 = $8,000. The ARO (Annual Rate of Occurrence) of 4 is not used in the SLE formula - it is used in the ALE formula (ALE = SLE x ARO = $8,000 x 4 = $32,000). The question asks specifically for SLE, not ALE.
$12,000 does not correspond to any valid combination of the given asset value, exposure factor, or ARO using standard risk formulas.
$32,000 is the ALE (Annual Loss Expectancy), calculated as SLE x ARO ($8,000 x 4), which represents annualized expected loss - not the per-incident single loss the question asks for.
Concept tested: Risk quantification - SLE formula (Asset Value x Exposure Factor)
Source: https://csrc.nist.gov/glossary/term/single_loss_expectancy
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