Global Cyber Risk Quantification Market Research Report 2024-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2030

Global Cyber Risk Quantification Market Research Report 2024-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2030

Cyber risk quantification is the process of numerically analyzing the impact of cyber events on an enterprise. Cyber risk quantification mainly helps enterprises understand business and financial cyber risks. Typically, cyber risk quantification uses complex modeling techniques such as Monte Carlo simulation to estimate the value at risk or expected losses from risk exposure. Through cyber risk quantification, businesses can understand how cyber risks, from ransomware to internal misconduct, will impact their potential revenue, profitability, and other financial aspects that contribute to the long-term success of the business.

Market Overview:

The latest research study on the global Cyber Risk Quantification market finds that the global Cyber Risk Quantification market reached a value of USD 2503.42 million in 2023. It’s expected that the market will achieve USD 9050.34 million by 2029, exhibiting a CAGR of 23.89% during the forecast period.

The benefits of cyber risk quantification

Cyber risks include the risk of financial loss, service disruption, and reputational damage due to IT failure. This failure may be due to equipment malfunction, or it may be due to a cyberattack or data breach. One of the key benefits of cyber risk quantification is the ability to prioritize risk management efforts. Quantitative measurement can produce a consistent understanding of what high, medium, and low risk means and how different threats impact a company's finances. This allows organizations to focus on the areas that matter most, minimizing their impact. Cyber risk quantification enables security teams to share a common language with key stakeholders, such as executives and board members. Company management can make more informed risk decisions by understanding the efficiency and return on investment of venture capital investments. Breaking down the scenarios in which a business might suffer a loss and evaluating them from a financial perspective can help a business negotiate a more economical policy. Cyber risk quantification can also help organizations reduce incident response times. Most companies need to adhere to cybersecurity compliance and regulatory requirements, depending on the data they store and the industry. Cyber risk quantification allows businesses to assess the current situation and highlight potential threats against cybersecurity compliance regulations, thereby avoiding unnecessary consequences. Cyber risk quantification helps produce and maintain appropriate documentation, and companies that use quantitative risk assessment models are at the forefront of digital transformation. This translates into increased customer trust and credibility. There are several cyber risk quantification models available, including Factor Analysis of Information Risk (FAIR) and Open Group Risk Taxonomy (O-RT). Both provide a consistent approach to quantifying cyber risk. They enable organizations to establish risk assessment baselines, determine cyber risk appetite, and measure cyber risk exposure levels. Additionally, cyber risk quantification should enhance rather than replace other IT and cyber risk management processes. Its value is best realized when complemented by risk monitoring, qualitative assessment, internal audit, and issue management processes. Overall, cyber risk quantification provides a way to demonstrate the effectiveness of cybersecurity programs and can help companies optimize their investments in cyber risk prevention.

Cyberattacks are becoming more sophisticated and aggressive

Cyberattacks have become increasingly sophisticated in recent years, capable of impacting a wider range of organizations in increasingly damaging ways. Some common cyber-attacks include malware infections, unauthorized access, data breaches, phishing attacks, vulnerability exploits, and security policy violations. Drivers for increased cyberattacks include increased digitization; growing volume, variety, and velocity of data; increasingly complex code bases; the interconnectedness of devices; increased theft and fraud as financial services move online; hackers, terrorists, and Nation-states alter political activities; cover up other criminal activities. Emerging risk trends include the increased risk of state-sponsored attacks; a changing third-party liability landscape; a shortage of cybersecurity professionals; and cyber governance with increasing ESG scrutiny. According to a report by research firm Gartner, organizations around the world wad spend approximately $150.4 billion on information security and risk management in 2021, growing at an annual rate of 12.4%. Agencies are investing significant resources in developing effective solutions. Governments aim to disrupt adversaries and other state actors, businesses are strengthening cybersecurity measures, academia and associations are advancing dialogue and collaboration, and technology companies are building sophisticated cybersecurity services.

There is a current trend to quantify the financial impact of cyber risk through models such as value-at-risk, which quantifies an entity’s potential loss in value over a defined period. Open FAIR is a standardized framework for quantitative cyber risk analysis. First published in 2006, it is one of the most commonly used risk quantification frameworks today. Monte Carlo Simulation is the type of simulation that the FAIR model runs in the background. Bow-tie analysis is a risk visualization technique. NIST SP 800-53 establishes control assessment procedures for government agencies. Private organizations can also use the framework to ensure security controls are implemented correctly and produce the desired results. Cyber risk quantification can help security leaders and information security teams achieve strong cybersecurity and convince management of the importance of cybersecurity by using language that the business understands. As a result, the rise in cyber incidents and cyber risk governance and regulations has created a need for organizations to implement cyber risk quantification methods and integrate them into their cybersecurity plans. While it is possible to quantify risk data manually, this is a time-consuming process that is prone to human error. A better way to quantify cyber risk is to leverage a modern GRC platform with built-in risk quantification capabilities. These integrated risk management platforms are designed to centralize all cyber risks in one place and automate the process of adding additional risk information to the repository, making it easy to use as a quantification function. This way, enterprises can run automated cyber risk quantification continuously.

Region Overview:

In 2022, the share of the Cyber Risk Quantification market in North America stood at 47.84%.

Company Overview:

The major players operating in the Cyber Risk Quantification market include Mastercard, KPMG, Safe Security , WTW, Protiviti Inc, etc. Among which, Mastercard ranked top in terms of sales and revenue in 2023.

Mastercard is a global technology company in the payments industry. The firm engages in the payments industry that connects consumers, financial institutions, merchants, governments and business. It offers payment solutions for the development and implementation of credit, debit, prepaid, commercial and payment programs. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

Segmentation Overview:

By type, Cloud-based segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Large Enterprise segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Cyber Risk Quantification market covered in Chapter 3:

Corax
ThreatConnect
Kovrr
WTW
Mastercard
KPMG
SecurityScorecard
Protiviti Inc
Safe Security 
Optiv Security Inc
BitSight Technologies
Balbix
Axio

In Chapter 4 and Chapter 14.2, on the basis of types, the Cyber Risk Quantification market from 2019 to 2030 is primarily split into:

Cloud-based
Web-based

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Cyber Risk Quantification market from 2019 to 2030 covers:

SMEs
Large Enterprise

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2019-2030) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)