Loss Event Frequency (LEF)

Loss Event Frequency is a Factor Analysis of Information Risk (FAIR) model component representing how often a loss event is expected to occur within a given timeframe. It is one of two core inputs to financial risk quantification, alongside Loss Magnitude. In Black Kite's Business Interruption scenario, Loss Event Frequency incorporates Environmental, Social, and Governance (ESG) risk scores and supply chain ransomware susceptibility across the vendor portfolio.