What if cyber risk could be expressed in euros or dollars? That is precisely what cyber risk quantification (CRQ) solutions propose. Between 2010 and 2015, this market developed rapidly—particularly in the United States—while remaining relatively unknown to the general public in Europe.
Cyber risk quantification (CRQ) is a method used to measure the financial impact of a potential cybersecurity incident on a given organization. To model risk in financial terms, CRQ solutions break it down into two main components: the frequency of a loss event (how likely an attack is to occur and succeed) and the magnitude of the loss (how much it would cost in euros or dollars, including response costs, regulatory fines, and lost revenue). By aggregating both internal technical data (vulnerabilities, controls, CTI) and the company’s financial data, these solutions perform probabilistic simulations (such as the Monte Carlo method) to calculate the Annualized Loss Expectancy (ALE).
The result of this calculation represents the company’s cyber risk exposure, expressed in…
