RiskXchange not only delivers a comprehensive financial quantification analysis but can also continuously monitor security programs.
To improve security within any business, a framework through which to assess exposure to cyber risk and to understand the impact on your organisation is key. The financial quantification of organisational cyber risk gives a business the necessary context through data-driven metrics by breaking down security program performance over time.
Research has found that most organisations around the world are under the impression that cyber risk has increased over the past two years while others believe that cybersecurity is a technological function not related to business. This misconception poses serious challenges for IT security specialists who are trying to position security as an important element in the business structure.
Internal and external cybersecurity experts are now under increasing pressure to provide cyber risk quantification insights in financial terms. This financial quantification is mainly provided to help stakeholders lacking in technological or security knowledge understand how cyber risk translates into business risk.
Financial quantification of cyber risk is important
In today’s highly complex digital era, Chief Information Security Officers (or CISOs) must incorporate the technical sphere with the business realm so that they can make informed, data-driven decisions that secure the budget needed while protecting the organisation’s interests at the same time.
To accomplish this goal, organisations must devise a cyber risk quantification framework – a framework that non-technical stakeholders can understand, one that is aligned with how the business assesses other elements that also receive funding.
Quantifying cyber risk financially allows organisations to analyse cyber risk in the same way as other types of risk. This process helps stakeholders understand the company’s potential financial exposure due to various impact scenarios and risk factors.
Once presented with data-driven insights, company decision-makers can allocate the necessary resources and prioritise remediation efforts based on how much the business stands to lose financially if they don’t plug a particular gap in the organisation’s security program.
Cyber risk is a business risk
Financial quantification provides a mix of firmographic data, technographic data, cyber scenario probability calculations and cyber insurance claims data which simulates financial exposure across different types of impact scenarios and cyber events in an efficient and repeatable way. The results deliver an analysis of probable maximum loss which can then be acted upon to bolster security across any organisation.
Although business leaders are able to understand the value of financial quantification, it is, without a doubt, a complex and time-consuming process. A process that involves cybersecurity firms like RiskXchange, long data collection processes and other resources. And, while an organisation’s cybersecurity posture evolves daily, quantifying exposure in terms of financial means is a more fixed process linked to annual fixed budgets not susceptible to change.
Financial quantification must therefore go hand-in-hand with cybersecurity ratings. Not only should organisations secure security budgets for continuous monitoring, but also a buffer budget to allow for any unforeseen circumstances which may arise. RiskXchange provides a full 360-degree cybersecurity approach that can not only support a comprehensive financial quantification analysis but can also continuously monitor security programs for evolving cybersecurity needs.
The power of financial quantification
Empowered by the above-mentioned data-driven insights, an analytical view of your organisation’s financial exposure will allow you to change the cybersecurity posture of your business, but most importantly have it discussed more seriously at a board and stakeholder level. This not only allows for a better cybersecurity budget but will provide tighter security across your entire business.
Incorporating financial quantification into your cybersecurity program allows you to:
- Make informed decisions about what risks to transfer, accept or mitigate.
- Prioritise resources based on which controls and programs will have the biggest impact on cyber risk and financial exposure.
- Communicate the value of security investments to stakeholders.
- To quantify risk over time. It will allow you to measure the changes in financial exposure as and when you invest in controls to improve the company’s security posture.
By introducing a basic understanding of cyber risk and the company’s security posture to the board, it will allow stakeholders to implement better business decisions for the entire organisation, its business partners, investors and customers.
How RiskXchange can help
RiskXchange is one of the firms leading the fight against cybercrime, coming up with novel solutions to everyday problems experienced at the hands of hackers. We are a respected provider of cybersecurity ratings that not only delivers a comprehensive financial quantification analysis but can also continuously monitor security programs for evolving cybersecurity needs.
With full visibility over your eco-systems entire attack surface in near real-time, you can regularly monitor and mitigate risks to prevent unnecessary exposures. Our passive data collection methods are effective and have no impact on your network performance. Using data-driven insights to prevent breaches is the best way to reduce an attack surface and prevent cyberattacks.
About RiskXchange
RiskXchange provides a powerful AI-assisted, yet simple automated and centralised 360-degree cybersecurity risk rating management approach. We generate objective and quantitative reporting on a company’s cybersecurity risk and performance, which enables organisations with evolving business requirements to conduct business securely in today’s open and collaborative digital world.
RiskXchange is an information security technology company that helps companies of all sizes fight the threat of cyber threats by providing instant risk ratings for any company across the globe. RiskXchange was founded and is led by recognised experts within the security industry, who have held leading roles within companies such as IBM Security.
Find out more here.
