Which term refers to the expected cost if a risk occurs once?

The term that signifies the expected cost if a risk occurs once is Single Loss Expectancy. This concept is fundamental in risk management and is calculated by multiplying the asset value by the exposure factor, which represents the percentage of loss that could be expected if that specific risk event were to materialize.

Understanding Single Loss Expectancy is crucial for organizations as it helps in quantifying potential losses associated with specific risks, thereby allowing for more informed decision-making when it comes to risk mitigation strategies and resource allocation. Knowing the potential financial impact of a single occurrence enables businesses to prioritize their risk management efforts effectively and budget for protective measures accordingly.

In contrast, Annual Rate of Occurrence refers to how often the risk is expected to occur within a year, while Annualized Loss Expectancy combines the Single Loss Expectancy with the Annual Rate of Occurrence to project the total expected loss over a year. Total Cost of Ownership generally pertains to the total costs associated with purchasing and operating an asset over its entire lifecycle, rather than focusing specifically on risk-related costs.