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A Board-Level Guide to Understanding Your Cyber Risk Condition

For: Acme Financial Services, Inc.

Estimated for: January 22, 2024 to January 21, 2025


This assessment is for a particular profile. A profile can be built for an entire business, a business unit, a product line, a critical business application, and any other logical or physical business entity.


How to Use Your Assessment?

This assessment explores the next twelve months of your cyber risk condition from a financial perspective. It illustrates the major cyber themes and possibilities that may present themselves to your business, based on patterns formed between historical data, your unique business profile, and the macroeconomic cyber condition.

This is your business, and the estimates for the next twelve months is just one way to think about your cyber risk condition. Your business has experienced the realities of cyber risk in a different way. This assessment should be used in conjunction with your existing observations.

This assessment is not a prediction of a pre-determined future that precludes unknown conditions and changing human motivations. Use this assessment as a target at which to aim your actions. You are the agent of your cyber resilience strategy. Take what you need from this assessment to better manage, design, and communicate your cyber resilience strategy.


Executive Summary.

Your cyber risk condition is summarized in three metrics. Each metric provides an essential element in understanding your cyber risk condition.


Since Last Quarter.

Since last quarter, your exposure ratio has improved by 14.7% and your control effectiveness has improved by 21.8%.


Further Details.

Your cyber risk condition is based on a combination of your exposure profile, asset applicability, threat and impact refinement, cyber insurance details (if applicable), cyber maturity, and a set of macroeconomic cyber risk conditions that further calibrate cyber incident severity and probability.

Cyber exposure is the sum of all possible impacts, each multiplied by the probability of impact. Your cyber exposure includes the benefit of your control effectiveness. Your current cyber exposure is equivalent to 0.81% of your annual revenue or $78.8M, which is further divided into four key loss categories.


Question to ponder:  When compared to other operational risks, does your cyber exposure indicate that your cyber risk condition requires further attention. If yes, then focus on the loss categories that represent the greatest proportions of your total cyber exposure.

As a result of your detailed assessment, the following illustrates the top 5 risk scenarios that could result in the highest financial loss and the top 5 control areas that could improve financial loss due to cyber exposure.



Cyber Risk Management Overview.

Building on your cyber risk condition, the following provides an overview of cyber risk management activities for your organization.

Mitigate

1. Through effective implementation, your organization has already mitigated 53% of your cyber exposure.

2. Your 67% implementation of NIST CSF is better than the manufacturing industry benchmark.

3. If your organization were to only focus on the NIST CSF Protect function, then your organization would experience a 49% improvement in your cyber exposure.

Transfer

1. Through effective implementation, your organization has already mitigated 53% of your cyber exposure.

2. Your 67% implementation of NIST CSF is better than the manufacturing industry benchmark.

3. If your organization were to only focus on the NIST CSF Protect function, then your organization would experience a 49% improvement in your cyber exposure.

Risk Appetite

1. Your cyber exposure is equivalent to 0.81% of annual revenue, which may indicate that cyber risk is not as critical as other operational risks.

2. Your organization has several prioritized options to further mitigate your cyber exposure if you believe your cyber exposure requires further attention.

3. Based on evolving cyber risk factors, you should continue to monitor for changes in your cyber risk condition.


Additional Thoughts and Recommendations.

Based on the information gathered and the resulting assessment therein, here are some additional thoughts and recommendations.

1. Since your organization is committed to meeting your manufacturing obligations, you may want to pay special attention to business interruption (due to malice or error) and ransomware (due to malice) since both loss categories could result in material outcomes.

2. Insider and privileged misuse and crimeware (which includes ransomware) may cause disproportionate damages when compared to other threat categories.

3. Even though misappropriation of intellectual property is not your greatest cyber risk, you may want to wrap additional protections around your intellectual property to reduce downstream consequences, such as brand damage and competitive advantage.


For More Information.

Please see your "Cyber Risk Condition" report or other reports within the X-Analytics report library.

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