Cary is working on a risk management project and must determine the degree of damage to a manufacturing facility downtown in the event of a flood. This degree of damage is referred to as:

A.
Its depreciated value

B.
Its exposure factor

C.
Its risk factor

D.
Its single loss expectancy

Explanation:
An asset’s exposure factor (EF) is its degree or percent of damage that would be
realized in the event of a disaster. EF is used to calculate a single loss
expectancy.