How does one measure the impact of a cyber incident?

Measuring the impact of a cyber incident involves a comprehensive evaluation of various dimensions that could be affected by the incident. The correct answer embodies this approach by considering potential losses, which encompass financial, reputational, and operational aspects.

Financial losses can stem from immediate costs associated with the incident, such as incident response, recovery efforts, and any fines or legal fees incurred. Reputational damage affects how stakeholders–including customers, partners, and the public–perceive the organization, potentially leading to a loss of business and trust. Operational losses involve disruptions to business processes, which can hinder productivity and lead to further financial loss.

While counting the number of affected users, measuring downtime, or identifying the types of data breached can provide useful insights, these metrics alone do not capture the full scope of the impact. They may inform parts of the overall assessment but do not encompass the comprehensive nature of the losses that could result from a cyber incident. Thus, evaluating the broader implications across all three categories—financial, reputational, and operational—provides a more accurate understanding of the incident's true impact.