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FAIR Risk Analyses
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FAIR Methodology
LEF - Frequency
How often per year could this event occur?
LEF = TEF × Vulnerability
Loss event frequency combines attempt frequency and success probability
SLE - Magnitude
What is the total loss per event?
SLE = Primary Loss + Secondary Loss
The sum of primary and secondary losses for each event
ALE - Annual Loss
What is the expected annual loss?
ALE = LEF × SLE
LEF × SLE = the expected financial loss per year
Risk Classification by ALE
<10K€
Minimal<50K€
Low<200K€
Moderate<1M€
High≥1M€
Critical