Quantitative Risk Assessment Single loss expectancy (SLE): Total loss expected from a single incident Exposure Factor (EF): the subjective, potential percentage of loss to a specific asset if a specific threat is realized. Annual rate of occurrence (ARO): Number of times an incident is expected to occur in one year Annual loss expectancy (ALE): Expected loss for one year SLE = Asset Value x EF (as a percentage - for example, EF = 15% means multiply the asset value x 0.15) ALE = SLE X ARO Safeguard value: Cost of a safeguard or control Scenario 1: Richman Investments provides high-end smartphones to 150 of their 3000 employees. The value of each smartphone is $1000 (its asset value, or AV). Richman has determined that in the past six months, they have had data intercepted from these phones 35 times. They have determined that their exposure factor (EF) is 30%. Note that it is indeed possible to calculate the ALE without including the EF, but here you are given the EF, so you must use it With this information, calculate the following and enter the answers into the following table: Show Calculation Result Prior SLE Prior ARO Prior ALE