Why Cyber Risk Quantification (CRQ) is More Compelling Than Ever Before

Nowadays Cybersecurity Leaders have to be experts in both technical and business matters to help stakeholders understand the organization’s cost of a cyber-attack or the cost of a data breach.

Equipped with data-driven insights, cybersecurity leaders can allocate resources and prioritize remediation efforts based on how much the organization stands to lose if they don’t address particular gaps in the cybersecurity program.

A recent IBM study highlights this challenge for cybersecurity leaders: Position cybersecurity similarly to other business initiatives and deliver Cyber Risk Quantification (CRQ) insights in financial terms.

Significance of Cyber Risk Quantification in 2022

The cost of a data breach has been steadily increasing over the past few years. It spiked upwards during the pandemic, in particular. Working remotely has increased the average overall data breach cost by around 137,000 dollars. 

Since the cybercrime market is not going anywhere anytime soon, cybersecurity professionals worldwide must mobilize to increase their visibility into their cybersecurity systems. Cyber Risk Quantification has emerged as a promising method to combat cyber threats and breaches. Here’s how current cybersecurity methods could use CRQ:

  1. Ultimate Impact of Cyber Risks – Even a single unique cyber breach could lead from thousands to millions of dollars in losses in a matter of days. This fact alone has become a major source of concern for business leaders, who have started prioritizing cyber risk.
  2. Need For Financial Accountability – It’s not enough to measure cyber risk in qualitative terms now with reference to predicting, determining, and analyzing cybersecurity spending. IT teams must translate cybersecurity risk into financial terms.
  3. Inadequate Compliance – Cybersecurity compliance only provides a minimum level of security. By quantifying cyber risk in financial terms, companies can evaluate their ultimate risk and prioritize the most effective risk mitigation initiatives.

Key Benefits of Quantifying Cyber Risk 

As cybersecurity becomes a top priority for the C-suite, it’s critical that cybersecurity leaders have a means of communicating with the rest of the leadership team on how to prioritize cybersecurity initiatives. CRQ reports present clear tangible facts about the cybersecurity environment and status that everyone can understand and act upon.

  1. Speak the Language of Your Business – Report the board members and the business in understanding the most potential financial impact of cybersecurity breaches and give the business rationale for implementing certain cybersecurity measures and related investments.
  2. Advocate the Value of Cybersecurity – Help key business initiatives like digital transformation, new product launches, and Merger Acquisitions by determining which cybersecurity architecture can reduce the risk to an acceptable level and cost-effectively as well.
  3. Prioritize & Analyze the Cyber Risks –  Cybersecurity leaders can evaluate what cyber threat events represent the biggest risk to the business and what cybersecurity initiatives are the most effective in reducing the average cost of cyber attacks.

How RedMonocle Helps Organizations Manage Cyber Risk

RedMonocle Cyber Risk Quantification generates financial cyber risk reports related to business objectives, cybersecurity initiatives, and control measures. This equips security leaders with the appropriate insights to predict the cost of a data breach and address potential cyber threats that can occur. It also leverages the inputs and multiple data resources such as regulatory data, cybersecurity insurance claims, financial data, security breach reports, and health of security and threat intelligence.

When the data is applied to the cybersecurity risk model, a team receives objective, automated outputs in the following areas:

  1. Quantification of cybersecurity risks – identifies gaps and overages in coverage, which supports the business in making better decisions to reduce potential risks/threats.
  2. Prioritization of cybersecurity risks – understand risk appetite and Common Vulnerabilities and Exposures (CVEs) by financial impact and loss exposure they represent to the business.
  3. Automated cybersecurity scenarios – compare the business trade-offs between cybersecurity controls and risk reduction versus the customer experience objectives.

Why Quantifying Financial Risk of Common Vulnerabilities and Exposures (CVEs) is Important

RedMonocle identifies which Common Vulnerabilities and Exposures (CVEs) present a substantial financial risk to the organization and prioritize patching efforts with the capability to automate cyber risk quantification (CRQ). RedMonocle also delivers a prioritized list of Common Vulnerabilities and Exposures (CVEs) that are most critical to the business.

You can examine what cyber risks you have today while also keeping track of bigger risks as things continuously evolve and change. This dynamic priority list takes into account the current prioritized patching efforts and moves new Common Vulnerabilities and Exposures (CVEs) with the highest financial risk and impact to the top of the list.

Who Should Perform Cybersecurity Risk Quantification?

A comprehensive approach is mandatory for addressing all areas of cyber risk vulnerability. A complete Cyber Risk Quantification should involve representatives across all departments in the firm instead of relying on a few IT or cybersecurity team members where vulnerabilities can be addressed and get fixed.

At present, organizations want to have an internal cybersecurity team to handle data breaches. But it’s challenging to hire, train, and track an internal team while they are trying to protect your environment against potential breaches. 

Outsourcing to a cybersecurity partner who specializes in predicting the cost of cyber attacks is a viable option, not only for cost savings but for providing optimal security reporting. RedMonocle helps companies assess cybersecurity investments and programs relative to the amount of risk they reduce, quantifying their value and ultimately optimizing your spending over the cybersecurity technologies. 

 

Take the steps to optimize security reporting in your organization.

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Nichole Kelly

Nichole Kelly

Vice President of Growth

Nichole Kelly brings over two decades of experience in growing organizations top line and bottom line revenue. As one of the leading marketing influencers she is the author of "How to Measure Social Media" and has traveled the world teaching marketers how to build and execute ROI-driven marketing strategies at every major marketing conference. Also an entrepreneur, Kelly was also the founder of SME Digital, a digital marketing agency that was sold to Renegade Marketing.

Kelly leads an active life of service and is the founder of The Bipolar Executive blog and podcast. This project is  designed to help shift the conversation around mental illness to one of mental wellness in Corporate America. 

Kelly holds a Bachelor’s Degree in Business Administration with a minor in Marketing from Saint Leo University.

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Chris Schroeder

Vice President of Engineering, Co-Founder

Chris Schroeder has over 25 years of experience in large complex IT environments from the Fortune 500 to the federal government. Chris has an extensive technology background in mobility, infrastructure operations, and data analytics. Schroeder is a seasoned entrepreneur and co-founder of App47 and the Vice President of Engineering and co-founder of RealOps (sold to BMC).

Chris is an active volunteer in his community coaching boys and girls lacrosse, supporting high school STEM programs, and serving on the Pastoral Council. 

Schroeder holds a Bachelor’s Degree in Computer Science from Radford University and a Masters Degree in Technology Engineering from George Washington University.

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Sean McDermott

President & CEO, Founder

Sean McDermott’s curiosity for advancing technology began at his first job as a network engineer/architect installing and managing the first private internet for the U.S. Department of Justice. At a time when the internet was just taking off, McDermott was at the forefront and has continued to be on the cutting edge of technology leading Fortune 500 companies through the dot-com bust, 9/11 and the 2008 recession. Sean has over three decades of experience working with CIOs in the Fortune 500 to trail blaze innovation and protect the IT infrastructure of the largest commercial and federal organizations in the world. 

McDermott is a mission-driven, serial entrepreneur who founded Windward Consulting Group, RealOps, Inc. (sold to BMC), App47 and RedMonocle. He is also the founder of the Windward Foundation and Alzheimer’s Caregiver Alliance, an organization dedicated to easing the burden of caregiving for individuals and families touched by Alzheimer’s disease.

McDermott is a member of the Forbes Tech Council and has been featured in Security Boulevard, TechRepublic, IT Visionaries, APM Digest, Inside BigData, DevPro Journal, IT Toolbox and more. He  holds a Bachelor’s Degree in Electrical Engineering from Villanova University and a Masters in Engineering Management from The Catholic University of America. 

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