Cyber risk and financial losses; Challenges and Practical Use Cases
Digitization has increased in the latest years, bringing extensive cyber risks. Understanding the exposures, and potential financial losses might be complex and challenging for all companies. This is in particular true when we discuss intangible risks or cyber risks. Despite various resources, growing maturity, regulatory frameworks, and budget funding, cyber risk is still misunderstood and traditionally described using qualitative methods, or limited quantification.
However, with addressing cyber risk, using a quantitative framework, companies are able to understand the “real” consequences:
- If a cyber event might lead to a loss superior to 10m USD, what are the detailed impacts to the business, and is it 15M USD or is it 150M USD?
- How much cyber insurance limits should I consider?
- Is my residual risk aligned with my risk appetite?
The presentation discusses cyber risk quantification and the benefits for finance risk optimization, as well as cyber security ROI.