Practice CISSP Exam Question #033

Lighter Than Air Industries expects that it would lose $10 million if a tornado struck its aircraft operations facility. It expects that a tornado might strike the facility once every 100 years. What is the single loss expectancy for this scenario?

  • 01
  • $10,000,000
  • $100,000
  • 10

Answer: [$10,000,000] The single loss expectancy (SLE) is the amount of damage that would be caused by a single occurrence of the risk. In this case, the SLE is $10 million, the expected damage from one tornado. The fact that a tornado occurs only once every 100 years is not reflected in the SLE but would be reflected in the annualized loss expectancy (ALE).

Source:  https://www.brainscape.com/flashcards/business-continuity-and-disaster-recovery-994638/packs/1774328

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