What factor determines the decision of where to estimate on the LEF side of the model?

The purpose of the analysis is the key factor in determining where to estimate on the Loss Exposure Factor (LEF) side of the model. This focuses on understanding what the organization aims to achieve through the analysis. Different analytical purposes—such as assessing overall risk, making investment decisions, or conducting regulatory compliance—can influence the aspects of loss exposure that need to be prioritized.

When the analysis is aligned with a specific goal, it helps identify which elements of loss exposure are most relevant and should be assessed. This ensures that the estimates made are tailored to provide the most useful information to support decision-making.

Other factors, such as the complexity of the asset, the type of threat encountered, and the number of stakeholders involved, can influence the analysis and its context but are secondary to the primary intention behind conducting the analysis. Focusing on the purpose ensures that the estimation process is relevant and effective in achieving the organization’s risk management and decision-making objectives.