As cyber threats become increasingly sophisticated and pervasive, the potential impact on an organization's financial health, reputation, and operational continuity grows. For boards, this means that cybersecurity is no longer a technical issue relegated to the IT department but a critical enterprise risk that requires their direct attention. With C-Risk, you can manage these risks with data-driven solutions.
Recently, the NACD published its 2023 Director’s Handbook on Cyber-Risk Oversight: “Board-management discussions about cyber risk should include identification and quantification of financial exposure to cyber risks and which risks to accept, mitigate, or transfer.” Cyber Risk Quantification (CRQ) offers a data-driven approach to cybersecurity, measuring risk in business terms, using financial figures, probabilities and percentages. These numbers provide a clear way for boards to see the impact of cybersecurity investments, understand potential risks and how improved controls can reduce financial loss.
A risk-based approach ensures that the board focuses on the most significant threats first. CRQ using the FAIR methodology scopes risk and identifies the financial impact of the six types of loss in cyber security: productivity loss, response loss, replacement loss, fines and judgements, competitive advantage and reputation damage. These loss types identify where investment is needed to reduce risks with the greatest potential impact.
The revised NIST framework recently added Governance as one of the pillars of a successful cybersecurity program. Informed decisions that protect your organization's digital assets, business processes, reputation, and stakeholders are possible with quantification. With CRQ, boards have access to data-based recommendations to assess the effectiveness of cybersecurity strategies. These same metrics also help the board in aligning cybersecurity objectives with the organization's broader goals, improve goverance, and evaluate the organization's cybersecurity posture against industry benchmarks and compliance requirements.
The digitalisation of our world continues to accelerate and the majority of business activities depend on information technology. Boards are more aware than ever of the cybersecurity challenges they face.
Position your cybersecurity strategy alongside the broader business strategy of your organization. With CRQ, you can facilitate comparisons, track performance of your security strategy and open up dialog with the board and other stakeholders.
CRQ using the FAIR Standard and methodology removes any ambiguity in terminology and provides a strong basis for key governance obligations. Disclose materiality of cyber risks and material cyber incidents to the SEC, comply with DORA and IDW PS 340.
We have a customised Security Performance dashboard to track monthly performance. This tool can be used to provide first line of defence oversight and facilitate communications between security operations and security governance.
Empower your team with cutting-edge insights on mitigating cyber and technology risks, enhancing governance, and driving compliance with Cyber Risk Quantification. Schedule an executive briefing with one of our experts.
While regulatory penalties and the immediate aftermath of cyberattacks have obvious financial implications, there are other costs that also affect an organization's bottom line.
A solid cybersecurity governance framework is the foundation upon which all other cybersecurity efforts are built. CRQ provides you with comparable financial metrics and risk-based insights so that you remain compliant with the SEC, DORA, IDW PS 340 and other international and regional regulations on cybersecurity and cyber risks.
Our Cyber Risk Quantification solutions are built using the Open FAIR Standard and methodology. The output of a FAIR analysis expresses risk in financial terms, which can be used to identify material risks and disclose material cyber incidents..
CRQ identifies and measures potential losses associated with gaps in your cyber security controls and clearly demonstrates ROI on cybersecurity initiatives that close gaps and reduce the likelihood or cost of a loss event.
We look forward to hearing from you.
When the board meets with the CISO regarding the cybersecurity strategy, it's important to ask pointed questions that address the full spectrum of cyber risk management. Here are some essential questions that a board should consider:
How are we identifying, assessing, and prioritizing our cybersecurity risks?
How does our cybersecurity strategy align with our overall business objectives and risk appetite?
What metrics or indicators are we using to measure our cybersecurity risk and effectiveness?
Where do we have gaps in our cybersecurity capabilities, and what is the plan to address them?
How are we ensuring continuous compliance, and how do we respond to changes in the regulatory environment?
At a time when digital transformation is at the core of many organizations, the board's role in overseeing and managing cybersecurity is critical. With an increasing number of regulatory compliance requirements, the board must ensure that cybersecurity measures are effective. Responsibilities extend to the reporting of material cyber incidents, the disclosure of data breaches, and the oversight of cyber risk.
Traditional approaches focus on qualitative assessments - using nominal terms like high, medium or low to describe risk. CRQ is a quantitative analysis method that uses statistical models and probabilities to provide data-driven insights. It quantifies the financial impacts of cyber risks, enabling the prioritization of controls and investments.
C-Risk is a recognized expert in Cyber Risk Quantification using the FAIR™ methodology. We provide CRQ consulting services, managed services, and training.
