As cyberattacks continue to hamper organizations spanning all sizes and sectors, it has never been more critical for CISOs to have an open line of communication with the C-suite and the Board regarding risk. Although most CISOs recognize the importance of communicating risk, many of them struggle with illustrating the impact of their defenses on reducing risk in dollars, or what is referred to as quantifying cyber risk.
When quantifying cyber risk, one must measure the financial impact and likelihood of a cyber-related incident taking place. This usually includes identifying, validating and analyzing threats using mathematical models that factor in an organization’s loss expectancies, investments in controls and probabilities of threats with impact.