Quantification of cyber risk
It is important to first be clear about the definition of cyber-risk, any risk of financial loss, disruption or damage to an organization’s reputation due to some kind of failure of its information technology systems. Now, cyber-risk quantification is the process of assessing the potential financial impact of a particular cyber threat. Quantifying cyber risks supports intelligent decision-making, helping security professionals make informed decisions about which threats and vulnerabilities to address first.
Why is it important
Quantifying cyber-risk gives monetary value to the cyber risks your business could suffer. This helps you identify your most critical vulnerabilities and execute appropriate corrective action without wasting time or resources. This supports a more practical and actionable approach to cyber risk mitigation, improving resource allocation, which is invaluable for modern businesses because it prevents you from preparing for all possible risks and distributing your resources too much.