Which term refers to the cost associated with the realization of each individual threat that occurs?

• A. Magnitude of Impact (Risk Impact)
• B. Single Loss Expectancy (SLE)
• C. Exposure Factor (EF)
• D. Return on Investment (ROI)

Answer: (A)

The cost tied to the realization of a single threat event is captured by the monetary loss that would occur from one incident. In risk management terms, that’s Single Loss Expectancy. It represents the dollar amount an organization would lose each time a threat materializes for a given asset. You get it by multiplying the asset’s value by the portion of that value lost in a single incident (the Exposure Factor). This makes SLE the precise measure of per-incident cost.

Magnitude of Impact describes how severe a risk is overall, often in qualitative terms, and isn’t the exact dollar loss from one event. Exposure Factor is a component used to compute SLE, not the total per-incident cost itself. ROI relates to investment returns and isn’t about per-incident loss.