SLE Calculation Metrics

BC.

The SLE (Single Loss Expectancy) is a metric used in risk analysis to estimate the financial loss that can be expected from a single security incident.

The two metrics that are used to calculate the SLE are:

1. ARO (Annualized Rate of Occurrence): ARO is the expected number of times a specific threat will occur in a year. This metric helps to estimate the frequency of a security incident. ARO is calculated as follows:

   ARO = 1 / ALE

   where ALE is the Annualized Loss Expectancy.

2. ALE (Annualized Loss Expectancy): ALE is the estimated financial loss that can be expected in a year from a single security incident. ALE is calculated as follows:

   ALE = SLE x ARO

   where SLE is the Single Loss Expectancy, and ARO is the Annualized Rate of Occurrence.

Therefore, options B (ARO) and C (ALE) are the metrics used to calculate the SLE.

The other options are not used to calculate the SLE:

• ROI (Return on Investment) is a financial metric that measures the profit or loss generated by an investment relative to the amount of money invested.
• MTBF (Mean Time Between Failures) is a metric that measures the average time between failures of a system or component.
• MTTF (Mean Time To Failure) is a metric that measures the average time until a system or component fails.
• TCO (Total Cost of Ownership) is a financial metric that measures the total cost of owning and operating a system or component over its lifetime.