Question

Consider the following scenario: The asset value of your company’s primary servers is

$2 million, and they are housed in a single office building in Anderson, Indiana. Field offices are scattered throughout the United States, but the workstations located at the field offices serve as thin clients and access data from the Anderson servers. Tornados in this part of the country are not uncommon, and it is estimated that one will level the building every 60 years. Which of the following is the SLE for this scenario?
a) $2 Million
b) $1 Million
c) $500,000
d) $33,333.33

Answer 1

Answer: A.) $2million

Step-by-step explanation:

SLE (Single Loss Expectancy) can be explained the expected loss to be incurred whenever an asset is exposed to risk. The expected loss is valued or calculeltes in monetary terms.

The Single Loss Expectancy is calculated using the formula :

SLE = Asset value (AV) × Exposure factor

In the scenario above ;

Asset value = $2million

Exposure factor = 1 ; risk of exposure occurs once in 60 years

Therefore,

SLE = $2million × 1 = $2million