1. What is Single Loss Expectancy?

Single Loss Expectancy (SLE) is a risk assessment value that represents the expected monetary loss each time a risk occurs. For Medicare assets, it helps quantify potential financial impact of security incidents or data breaches.

2. How Does the Calculator Work?

The calculator uses the SLE equation:

Where:

• \( AV \) — Asset Value (total value of the asset in dollars)
• \( EF \) — Exposure Factor (percentage of asset loss expected from a risk, expressed as decimal)

Explanation: The equation calculates potential loss from a single incident by multiplying the total value of the asset by the percentage of the asset that would be lost.

3. Importance of SLE Calculation

Details: SLE is fundamental to risk analysis for Medicare assets. It helps prioritize security investments, justify budgets, and understand potential financial impacts of security incidents.

4. Using the Calculator

Tips: Enter asset value in dollars, exposure factor as decimal (e.g., 0.25 for 25%). Both values must be positive numbers (AV > 0, 0 < EF ≤ 1).

5. Frequently Asked Questions (FAQ)

Q1: How is SLE different from ALE?
A: SLE calculates loss from a single incident, while Annualized Loss Expectancy (ALE) calculates expected annual loss (ALE = SLE × ARO, where ARO is Annual Rate of Occurrence).

Q2: What's a typical exposure factor for Medicare data?
A: For PHI breaches, EF often ranges from 0.1 to 0.5 depending on data sensitivity and breach type, but should be determined through risk analysis.

Q3: How do you determine asset value for Medicare systems?
A: AV should include replacement costs, data value, regulatory fines potential, and reputational damage estimates.

Q4: Can SLE be used for non-financial impacts?
A: While primarily financial, SLE can be adapted to quantify other impacts by assigning monetary values to non-financial consequences.

Q5: How often should SLE be recalculated?
A: Recalculate whenever asset values change significantly or when new threat information affects exposure factors.