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Home / Glossary / SLE
Glossary Β· Management

SLE

Single Loss Expectancy

The money you would expect to lose if one specific thing went wrong once.

Like the repair bill for one car accident.

How it works

  • It is the value of an asset multiplied by the share lost in one incident.
  • It is used in risk planning.
  • It helps decide how much protection is worth buying.
  • It is paired with how often the event might happen.

What can go wrong (example scenario)

A bakery estimated that one day without its ordering system would cost about a day of orders. That figure showed a backup connection was worth paying for.

  • A risk plan puts a figure on a lost laptop.
  • An owner estimates the cost of one outage.
  • An insurer asks about expected loss.

A question owners ask

How do I work it out?

Estimate the cost of one incident, such as a day of lost sales plus the cost to recover. Round numbers are fine.

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