Cyber Risk Analysis Tool Quantifying Enterprise Financial Impact
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Solution Overview
Problem
Existing cyber risk assessment methods rely on subjective assessments and probabilistic distribution models that may not accurately characterize the risk of low-probability but high-impact cyber incidents, and fail to account for the uniqueness of individual enterprise cyber defense systems.
Innovation Solution
A cyber risk analysis tool that uses analytical approaches to quantify and measure cyber risk by evaluating network behavior and configuration, identifying relative importance of information assets, and determining potential losses associated with different types of attacks, allowing for informed decision-making on resource allocation and network resilience.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If probabilistic distribution models are used to determine the likelihood of cyber incidents, then the assessment can be quantified, but the accuracy for low-probability high-impact events is degraded
Solution Approach 1:
The patent changes the parameter of probability assessment from continuous probabilistic distributions to discrete scenario-based likelihoods. By transforming the mathematical model from probabilistic to scenario-driven, low-probability events are no longer diluted by statistical averaging and can be properly weighted according to their potential impact.
Solution Approach 2:
The patent segments the continuous probability space into discrete attack scenarios. Each scenario represents a specific attack pathway with defined likelihood and impact, allowing individual assessment of low-probability events rather than treating them as part of a continuous distribution where they get statistically minimized.
2Ease of manufacture
If generic industry cyber defense systems are used as a factor in determining impact, then the assessment can be standardized, but the value to individual enterprises is diluted
Solution Approach 1:
The patent applies local quality by customizing the impact assessment to each enterprise's specific context. While the overall framework remains standardized, the actual impact calculations incorporate enterprise-specific factors such as business criticality, regulatory requirements, and organizational resilience capabilities, making the assessment locally optimized for each organization.
Solution Approach 2:
The patent introduces dynamics by allowing the impact factors to be adjusted and weighted according to individual enterprise characteristics. The assessment model transitions from a static generic template to a dynamic framework that adapts to each enterprise's unique risk profile, business operations, and defense posture.
3Ease of operation
If subjective assessment by practitioners is used to determine vulnerability, then the process can be simplified, but the results are skewed based on individual input
Solution Approach 1:
The patent uses copying by replicating standardized vulnerability assessment templates across multiple assessments. Instead of relying on individual practitioner judgment, the same structured templates and criteria are copied and applied consistently to each enterprise, eliminating subjective variation while maintaining ease of operation through template reuse.
Solution Approach 2:
The patent creates a universal vulnerability assessment framework that serves multiple enterprises and contexts. The standardized templates and criteria are designed to be universally applicable across different organizations while capturing enterprise-specific nuances, making the same tool multi-functional for diverse assessment needs.
Data Source
AI summary
Methods and systems are for analyzing and measuring cyber risk using analytical approaches to determine and measure the consequences and/or vulnerabilities to a system (e.g., a computer network, an enterprise network, etc.) due to cyber incidents. By evaluating and quantifying risks associated with several types of cyber incidents and/or security breaches based on a network architecture and/or system design, the cyber risk analysis tool may enable the enterprise leadership to make prudent, informed decisions on how to address individual cyber risks (e.g., determine risk policy) and/or modify existing network deployments or policies. For many institutions, enterprise objective is defined in financial terms, such as budget impact, corporate earnings, impact to balance sheet and/or reputation impact. Thus, the output of the cyber risk analysis tool may be converted to or otherwise expressed as a financial cost in order to provide useful information to decision makers.