The Kovrr Methodology
A Walk Through of the Cyber Risk Quantification Process
Uncovering Kovrr's Innovative Approach to Cyber Risk Quantification
Introduction to the Kovrr Methodology
Kovrr's CRQ methodology consists of data input sources and statistical models that work together to evaluate an organization's cyber risk. It offers insights into the likelihood of experiencing various cyber events and their monetary consequences. This video breaks down this methodology step-by-step, providing cyber risk managers with transparency into how loss forecasts are calculated.
Global Data Curation
In order to assess an organization's potential damage from cyber risks for the upcoming year, Kovrr's models incorporate the context of the cyber risk landscape. This process involves leveraging continuously updated data sources to get insights on vulnerabilities and exploits, cyber events, threat intelligence, and third-party service outages. Likewise, our models are fed with cyber insurance loss intelligence.
Calculating Inherent Risk
Once the contextual data has been gathered, Kovrr's CRQ platform generates an organization's inherent, or baseline, risk. This risk is defined as the level of risk and financial damages the company should expect to experience within the upcoming year, even if all security controls are wholly in place. The inherent risk is the cost of doing business in the digital world.
Custom Organizational Intelligence
The next step in Kovrr's CRQ methodological approach is gathering information specific to the organization. Cybersecurity leaders can either input this data or take advantage of our data adapters and integration capabilities. Kovrr's cyber risk quantification takes into account the company's attack surface, technological profile, custom damage types, existing cybersecurity controls, and IT infrastructure, ultimately tailoring loss forecasts according to these unique characteristics.
Generating Bespoke Events
A Bespoke Event Catalog is then created, composed of all the possible events that may happen to the company within the upcoming year, excluding irrelevant potential events. For instance, a goods and services company will not be exposed to a cyber risk that only affects software used by financial institutions. These Bespoke catalogs ensure highly targeted results.
Monte Carlo Simulations
After the event catalog has been curated, Kovrr's CRQ simulation engines test these scenarios against the company's assets and defenses using the Monte Carlo simulation. According to our methodology, the upcoming year is simulated 25,000 times, enough to calculate accurate and precise loss forecasts, which cyber risk managers can then leverage to develop cybersecurity strategies.
Understanding the Financial Damage
To calculate the expected financial losses an organization faces due to cyber activities, Kovrr breaks down cyber events into specific cost components. These components include but are not limited to lost income, data recovery, forensics, monitoring services, extortion payments, and regulatory fines. Kovrr's CRQ approach also allows companies to add custom loss components when applicable.
Kovrr’s CRQ Methodology FAQs
Speak to an Expert to Learn MoreWhat types of data and intelligence are fed into Kovrr’s models?
How does Kovrr calculate my organization’s inherent or baseline risk?
What internal organization information does Kovrr’s methodology incorporate?
Why does Kovrr utilize the Monte Carlo simulation in its CRQ approach?
Streamlining Communication With Kovrr’s CRQ Approach
After cybersecurity leaders have access to the likelihood and potential severity of events, they're equipped to have high-level discussions with the board and non-technical executives. Contact one of our cyber risk experts today to discover more about Kovrr's innovative methodology.
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