Cyber risk quantification (CRQ) is a formal process for empirically calculating cyber risk exposure and the potential impact of a cyber security incident in business-relevant terms.
There are several frameworks for conducting CRQ, but virtually all consider the same factors including critical assets, most likely scenarios, threat surface and threat landscape, potential impact on business loss, time and cost involved in mitigation, potential regulatory fines and penalties, and harm to business reputation.
Here are eight reasons why CRQ could be an essential strategy to protect organisations and unleash sustainable business growth.
1. CRQ brings cyber security on parity with other business risks
By creating a common taxonomy and framework to discuss risk using standard metrics, business leaders can start off on the same page when considering potential options and strategies.
2. CRQ builds organisational resilience
Traditional risk models take a qualitative approach that don’t go far enough and could leave organisations exposed. CRQ provides a framework for optimising resiliency that goes far beyond subjective indicators with dynamic assessments and actionable insights.
With the average cost of a breach at $4.35m worldwide, that direct savings alone provides substantial capital that can be invested in growth strategies rather than recovery.
4. CRQ can inform capital investment
Every investment — not just those in cyber security — impacts risk. An effective CRQ programme can help guide decisions on how to assign risk capital, and how to measure ROI on those investments.
5. CRQ enables calculated risk taking
A zero-risk approach isn’t an option because that means zero action. Businesses must evolve and adapt to grow, which requires accepting a certain amount of risk. CRQ enables you to accurately quantify the risk of any potential move and make better informed decisions.
6. CRQ can help lower cyber-insurance rates
As the frequency and scale of attacks accelerates, cyber security insurance premiums are skyrocketing. CRQ can help organisations accurately define their risk to negotiate lower premiums based on empirical evidence.
7. CRQ could be a competitive advantage
Cyber security has become critical business infrastructure, and if your competitors are able to make data-driven decisions, you may get left behind. CRQ is essential to both protecting the organisation and capitalising on strategic opportunities.
8. CRQ enables timely decision making
It’s essential to have the insights you need to act quickly to keep pace with change. That’s why CRQ should be an ongoing process: so business leaders always have real-time analysis at their fingertips.