How to Measure the Financial Value of Your Cyber Information
September 19, 2023
Courtesy of RiskAssure
Did you know cyber risk impacts every aspect of your business, not just the technology you use to operate? It’s critical to understand how the type and amount of cyber risk you carry can affect your bottom line, especially when it comes to purchasing cybersecurity insurance for your business.
Of course, there’s no shortage of resources on cybersecurity and how it can impact your business, but there’s often a key component missing: how to measure the financial value of your cyber information.
Gaining visibility into the type and volume of cyber information your business carries is where the real power comes into play. By assessing this data, it’s possible to attach a dollar amount to it.
Measuring your cyber information value in this way sets realistic expectations around:
- What you can expect to pay for cyber insurance
- Building an actionable and effective cybersecurity plan for your business
- What’s at stake in the event of a cybersecurity incident
Do I need to measure the financial value of my cyber information?
If you care about your business, this is a crucial step you don’t want to skip when protecting your business.
If your company were to be breached tomorrow, you could be fined for each piece of sensitive data. Beyond basic fines and fees, you could also incur large penalties that are often too much for small businesses to recover from.
According to Forbes, 83% of small and medium-sized businesses are not financially prepared to recover from a cyber-attack. In addition to the tangible loss your business could suffer, your brand reputation is also at stake. These are harsh realities that can be largely avoided or mitigated when you have a firm grasp on what your cyber information is actually worth.
OK, so how do I measure the financial value of my cyber information?
First, take a deep sigh of relief because you don’t have to do it on your own. There are many resources that can help you get on the path to increased visibility. For a clear view into your cyber information, easy-to-use tools like RiskAware can automatically monitor your devices in real-time to continuously measure the financial value.
It works by scanning all of your files, looking for sensitive data patterns, and then assigns each found pattern a risk value in dollars. It’s that simple; you get to see a total dollar amount that reflects the value of your cyber information. You also get visibility into duplicate files, along with files that might no longer be needed. This allows you to take action and remove redundancies and expired information, thereby reducing your risk.
How does the value of my cyber information affect my cyber insurance policy?
Cyber insurance policy rates have drastically increased in recent years, and are only expected to continue on this path. There are several reasons for this, but often cyber insurance carriers simply lack the critical data needed to appropriately price policies. Even with the spike in rates, it can be difficult to get a provider to cover your business, as they typically require proof of cybersecurity best practices and good cybersecurity hygiene.
Knowing the financial value of your cyber information can help you win a cyber insurance policy that’s based on hard data, rather than a rough estimate. RiskAware can help you get there by arming you with the information required to make educated decisions around your: risk, behaviors, mitigation plans and your cyber insurance policy.