Which method is used to quantify risk in cyber risk management?

Using quantitative risk analysis techniques is integral to quantifying risk in cyber risk management as it involves the use of numerical values and statistical methods to estimate risk levels. This method provides a more objective approach to identifying and analyzing potential risks based on measurable data, enabling organizations to quantify the likelihood of adverse events and their potential impact. By incorporating metrics such as financial loss estimates, incident frequency, and overall vulnerability assessment, quantitative risk analysis allows for more precise risk evaluations and facilitates informed decision-making.

This approach contrasts with qualitative methods, which, while useful in providing context and insight into risks, often rely on subjective judgments and descriptive analysis. Quantitative methods yield specific numbers that can be used for financial planning, resource allocation, and risk mitigation strategies, giving them a significant advantage in risk management practices where precise measurements are crucial for understanding potential vulnerabilities and impacts.