Cyber risk awareness has grown among board members over the last few years. In a survey published in the 2023 Director's Handbook on Cyber-Risk Oversight, 83% of boards understand cyber risk better than they did 3 years before. This is great news for CISOs and security risk managers. Cyber Risk Quantification supports business decisions by presenting objective, measurable data that can be used to defend a resilient infosec budget.
The CISO engaged C-Risk to develop and manage a Cyber Risk Quantification (CRQ) program that would provide regular data-driven insights needed to articulate and defend the infosec budget to the board and track the performance of controls.
Case study: The CISO of a large consumer products company was tasked with justifying an information security budget to the board and optimizing security controls.
Our analysts began by identifying the company’s critical digital assets, including intellectual property and sensitive consumer data derived from e-commerce activities. Then the top cyber risks were carefully scoped, quantified, and analyzed. The scenarios were based on available industry data and internal data, and the C-Risk knowledge library of quantifiable risk scenarios.
The CRQ analysis was a key part of the subsequent control assessment. We evaluated various control families to identify which controls would reduce the financial impact of the most frequent and most costly cyber incidents. Key controls such as privileged access management, data encryption practices and risk awareness training were identified.
The results of this initial deep dive provided the CISO with the business metrics needed to make a compelling case to the board for an increased infosec budget. Further CRQ assessments helped align cybersecurity initiatives such as cyber risk insurance with organizational objectives.
CRQ defines your risk landscape by identifying and quantifying the most frequent and most costly risks to your critical digital assets, so you can prioritize spend on controls and tools to mitigate the financial impact of cyber incidents on your organization.
The quantified results of a CRQ analysis can be used to conduct a control capability assessment. Gain insight into the most impactful controls that will reduce overall risk, improve compliance and build resilience.
Perform cost-benefit analysis of various control deployment options that are identified in a control capability assessment. Determine which controls to prioritize based on the financial impact of a loss event vs the cost implementation.
CRQ gives you ability to compare, measure and defend infosec budget recommendations with quantified insights.
A CRQ executive insight report provides the business metrics needed to justify your infosec budget to the board.
Regular CRQ assessments can be used to track security performance trends and compare business units.
Gain visibility where controls are less robust for early detection. Track and measure the top risks that negatively impact your business.
Identify the most probable attack vectors with CRQ and MITRE ATT&CK to implement the best controls.
Demonstrate their risk-based governance and make timely disclosures when a material cyber incident happens.
Choose a cyber risk insurance policy that aligns with your risk appetite and top risk scenarios.
Cyber Risk Quantification is a risk-based approach to cyber and technology risk. CRQ enables information security and IT teams to align their efforts with control assessment deep dives. It provides CISOs and other senior management with the business metrics to deliver data-driven executive reports to the board and prioritize investments.
We look forward to hearing from you.
Monte Carlo is a mathematical technique to analyze data and predict a distribution or range of probable outcomes. Monte Carlo simulations are use in a FAIR-based CRQ analysis to calculate a range of loss exposure in monetary terms.
NIST SP 800-53 consists of 20 different control families. A control family is a collection of related security controls. These include control families like physical access controls, incident response, audit and accountability, risk assessment. Within each control family there are several specific controls. In total, there are 1,189 individual controls.
Cyber risk insurance is one of many possible ways to mitigate the financial impact of a major cyber incident.
The question can only be answered more specifically as part of a CRQ approach in combination with a cyber risk insurance assessment. An insurance assessment considers the results of your CRQ Top Risk analysis, the policy's retention or deductible amounts, the coverage by type of loss, and your aggregate coverage.