CompTIA CySA+ Practice Test

Which of the following factors is a critical component of calculating single loss expectancy (SLE)?

1. Annual rate of occurrence (ARO)

2. Risk factor (RF)

3. Cost of preventive measures

4. Duration of recovery

The correct answer is: Risk factor (RF)

The correct answer is identified as the risk factor (RF) because it plays a crucial role in determining the potential financial impact of a loss event. Single Loss Expectancy (SLE) is a metric used in risk management to predict the financial loss that would be incurred from a single occurrence of a risk. It is formulated as the product of the asset value and the risk factor associated with that asset. The risk factor quantifies the degree of potential loss relative to a specific threat, making it an indispensable component in the calculation of SLE. In contrast, the annual rate of occurrence (ARO) relates to how frequently a risk event might occur but does not directly influence the single loss expectancy. The cost of preventive measures pertains to the expenses incurred to mitigate risks, which is more relevant for budgeting and risk management strategies rather than calculating SLE. The duration of recovery focuses on the time needed to recover from an incident, affecting business continuity considerations, but does not factor into the direct calculation of the single loss expectancy itself.