Moving to a more agile and resilient business model is challenging for many organizational leaders. In the past 18 months, in terms of cyber security, organizations have implemented transformational cloud security programs, adopted security by design principles, embraced Zero Trust, invested in BISO positions, and made other dramatic shifts to optimize business and security outcomes. Organizations are pushing past the status quo to create stable, successful security postures and to lead business growth.

In the process, Cyber Risk Quantification has gained attention as a means of proactively managing cyber security risk. Fifty-percent of enterprise security leaders leverage security risk quantification to demonstrate the value of cyber security and to optimize cyber security ROI. A powerful high-level conversation starter, Cyber Risk Quantification is arguably the trendiest buzzword in cyber security right now. Here’s why:

What is it?

Cyber Risk Quantification (CRQ) is an advanced risk assessment modeling technique that helps organizations see hidden risks, estimate probabilities, assess the impact of probable threat types, and calculate dollar loss metrics. The approach is considered cutting-edge, although it’s still in the early development phases.

Know the why

Pursuing a quantitative finance-focused approach to cyber security risk management is an inherently appealing concept. Cyber Risk Quantification has parallels to sports analytics, which applies data and statistical modeling to the development of game strategy. Cyber Risk Quantification empowers organizations with a new set of factors to reconcile when making cyber security investment decisions.

The integration of Cyber Risk Quantification data into risk assessment models also provides board members and non-technical executives with visibility into potential event impacts, resource allocation requirements, insurance policy needs, and the possible financial consequences of cyber attacks.

Cyber Risk Quantification data assists everyone in viewing security risks through a common perspective and with a common vernacular. Subsequently, it can move organizations forward in developing a clear strategy and roadmap for both known and unknown risks.

Further, more than half of executives have encountered compliance conundrums and data breaches related to merger and acquisition activity. Implementing risk quantification can help organizations obtain a 30,000 foot view of risks, determine the cost of gaps that should be priced into the deal, align security across critical services, and prevent data breaches.

Competitive advantage

Because Cyber Risk Quantification enables organizations to respond to threats in a thoughtful and precise way, if presented to partners and clients appropriately, the practice can lead to increased trust and confidence in a given business.


Methodologies and best practices around cyber risk quantification are still evolving. However, the general approach can create new efficiencies, highlight the monetary impact of threats, make it easier to gain consensus around issues, improve operational decision support, and result in better cyber security resilience.

Does your organization already leverage cyber risk quantification? Consider setting up systems and tools that can help you automate the process, reducing time, energy and other expenditures around data mining and interpretation.

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