What does "Single Loss Expectancy" estimate?

Single Loss Expectancy (SLE) is a crucial concept within risk management and information security. It represents the monetary loss that is expected to occur each time a specific threat successfully exploits a vulnerability. This metric gives organizations a way to quantify potential financial impacts from incidents, making it an essential component for calculating potential losses related to security threats.

In practical terms, SLE helps businesses understand the financial consequences of incidents, such as data breaches or physical asset theft, by providing an estimate of the cost associated with a single event. This estimation aids in risk assessments and informs decisions on how much to invest in security controls and risk mitigation strategies.

The other choices mentioned do not accurately describe SLE. For instance, while total potential loss in a year may consider cumulative incidents, it does not reflect the individual cost of an event. Similarly, average cost incurred during a single incident could imply a broader overview rather than focusing on a specific, single loss. Overall asset value does not directly correlate to the expected loss per incident; it represents the total worth of an asset, which is different from the recurring loss anticipated from specific threats.