Cyber risks are a subset of operational risks characterized by high speed, scalability, and dependency on external suppliers. Their realization can negatively impact revenue, profit, operational expenses, and overall business valuation.
Companies are increasingly adopting a hybrid approach to risk assessment, combining qualitative expert judgment with quantitative statistical modeling. This method utilizes frameworks like FAIR to translate technical threats into financial metrics.
The process involves four key stages: identifying critical assets and processes, analyzing threats and vulnerabilities, calculating potential financial losses, and establishing a cycle of regular monitoring and updates.
Data for these models are derived from incident history, vulnerability assessments, business impact analysis, and expert interviews. This approach allows organizations to prioritize security investments and align cybersecurity strategy with business objectives.
