What does Secondary Loss Event Frequency (SLEF) measure?

Secondary Loss Event Frequency (SLEF) specifically measures the likelihood of primary losses causing secondary losses. This concept is critical in risk analysis as it recognizes that an initial loss event—like a data breach or equipment failure—can trigger additional losses that may not be immediately visible or predictable at first glance.

For instance, if a company experiences a cybersecurity breach (the primary loss), it may subsequently incur reputational damage, regulatory fines, or increased operational costs (the secondary losses). By quantifying the frequency with which these secondary impacts arise from the initial loss event, organizations can better understand the overall risk landscape and potentially allocate resources more effectively to mitigate such risks.

In contrast, the other options focus on different aspects of loss events or controls, which do not align with the specific measurement of secondary losses stemming from a primary incident.