Cyber risk assessment is the systematic analysis and quantification of cyber risks — as the basis for risk treatment decisions and regulatory compliance.
Methods for cyber risk assessment
Proven methods: (1) qualitative assessment — a risk matrix combining likelihood × impact (high/medium/low), (2) quantitative assessment — monetary quantification of risk (e.g. the FAIR methodology), (3) hybrid approach — qualitative assessment supported quantitatively by external scores, (4) scenario-based assessment — analysis of specific attack scenarios. For TPRM purposes, a scalable hybrid approach combining external data (360TPRM) with internal expertise is recommended.
360TPRM delivers the objective data points for cyber risk assessment. Human judgement on business context and risk appetite is added on top.
Cyber risk assessment at suppliers
For suppliers, cyber risk assessment covers: external security assessment (cyber risk score), criticality assessment (how important is this supplier?), dependency analysis (what happens if it fails?), compliance status (ISO 27001, SOC 2?), incident history, and an overall assessment and risk classification.
Companies with 100+ suppliers can't monitor all of them with the same intensity. Cyber risk assessment determines which suppliers get which monitoring intensity.
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