Top decision-makers are all about quantifiable data. They don’t deal in generalizations or conjecture. If you are making a presentation to company leaders, they are almost certainly going to say some variation of “Show me the numbers.” That’s how you sway them in your favor and deliver your message with impact.
Cyber risk is a top concern for organizations across the globe. The proliferation of AI and chatter about quantum computing are exacerbating these concerns. How can you get leadership on board so that your organization can increase its investments in cybersecurity? You’ll need to quantify the risks. Here’s how to do that.
Translate Cyber Risks Into Dollars
To make cybersecurity understood in boardrooms, you’ll need to rely on models that translate technical vulnerabilities into financial loss estimates. Tools like factor analysis of information risk (FAIR) allow you to calculate expected monetary impact based on threat scenarios, asset values, and risk exposure.
The FAIR model provides a framework for understanding and analyzing cyber risk in financial terms. Instead of providing color-coded outputs, FAIR gives you reliable numbers that you can use to justify additional cybersecurity investments.
Choose the Right Metrics
Selecting an appropriate framework is a huge step in the right direction. You’ll also need to identify and calculate metrics that are relevant to cyber risk assessment.
Here are the metrics you’ll need to monitor:
- Single Loss Expectancy (SLE): Potential monetary loss from a single incident
- Annualized Loss Expectancy (ALE): Expected annual loss based on risk probability and impact
- Mean Time to Detect/Respond (MTTD/MTTR): Helps assess the financial exposure window
- Risk Reduction Cost Efficiency (RRCE): Evaluates how cost-effective a proposed security control is
These metrics are critical for financial professionals seeking to align cyber investments with enterprise-wide risk tolerances and budget constraints.
Cyber Risk Tools for Finance
One of your best resources for quantifying and addressing cyber risk is right down the hall. Your organization’s CISO can help you identify existing or new platforms for assessing and quantifying risks. The leaders of your finance department should already be working hand-in-hand with the CISO to decrease the organization’s overall risk profile. This is the next step in that partnership.
There is a wide range of tools available for assessing and addressing cyber risk. Work with your CISO to identify which solutions are most practical for your business.
Additional Factors to Consider
You don’t want to embellish or be hyperbolic when presenting cyber risk figures to company leadership. However, giving them a little bit of sticker shock with realistic worst-case scenario estimates can encourage them to act now. Your presentation should include costs associated with the following:
Cost of Downtime
One of the most direct implications of a successful cyber attack is downtime. Every minute your business is out of commission, the losses are piling up. Measure the revenue lost per hour of system unavailability. For instance, if your payment processing system is down, calculate the direct impact on transaction volume.
For added effect, compare these estimates to the proposed cost of upping your risk mitigation budget. Stakeholders who have been on the fence about increasing cybersecurity spending will likely be swayed by these convincing numbers. You want to emphasize the potential costs of doing nothing so that your company’s cybersecurity posture doesn’t stagnate.
Incident Response Costs (Damage Control)
How much will it cost your organization to respond to a successful attack? You’ll need to account for expenses such as:
- Forensic investigations
- Legal counsel
- Public relations efforts
A reactive posture can lead to catastrophic consequences for your organization. Provide company leaders with realistic estimates of these costs and adopt a proactive approach.
Costs of Reputational Harm
Quantify the impact of lost customer trust through metrics like customer churn rate or reduced market share. Even if your business responds swiftly, some consumers are going to lose trust in the organization. In the aftermath of a breach, you may also struggle to acquire new customers. This reputational harm translates to:
- Lower conversion rate
- Increased marketing spend
- Higher churn rate
Look to other businesses in your industry for insights. Explore how a breach impacted their standing in the market and apply what you learn to your business.
Regulatory Fines
Depending on what industry and region you operate in, you may be subject to regulatory fines after the breach. These fines can total millions of dollars for non-compliance. Can your business withstand those penalties unscathed?
Start the Conversation
Quantifying the risks of cyber threats is a critical step toward a more secure and resilient business. However, you also need to open up the conversation with the C-suite. To get the conversation going, present some high-level financial estimates of the implications of an attack.
Once company leaders are intrigued, they will likely greenlight a more comprehensive presentation. That’s your opportunity to make a case for greater cybersecurity investments.
