Cyber Risk & Third-Party
Risk Management
We translate cyber risk into financial metrics the business can understand, enabling investment decisions, control prioritization, and effective management of third-party and supply-chain risk.
COMPREHENSIVE METHODOLOGY
6 Specialized Services
Cyber Risk Quantification (CRQ)
We Express Cyber Risk in Financial Terms Using the FAIR Model
Cyber Risk Quantification (CRQ) transforms technical assessments into concrete expected-loss figures that the business can understand, budget for, and manage. We use FAIR (Factor Analysis of Information Risk), the international standard for financial risk quantification, enabling organizations to compare scenarios and justify security investments with data.
Applied Frameworks and Models
Key Metrics and Reference Values
Quantified Scenarios
- Ransomware Affecting Critical Production Systems
- Customer or Employee Data Breach
- Administrative Credential Compromise
- DDoS Attack on Critical Digital Services
- Unauthorized Access Through a Compromised Supplier
- Theft of Intellectual Property and Trade Secrets
- Malicious Insider Threat Incident
- Compliance Failure Resulting in Regulatory Fines
FAIR Analysis Components
- LEF: Loss Event Frequency
- TEF: Threat Event Frequency
- Vulnerability: Probability of Successful Contact
- LM: Loss Magnitude (Primary and Secondary)
- Primary Loss: Direct Incident Costs
- Secondary Loss: Fines, Reputation, and Litigation
- TCSF: Strength of Implemented Controls
- Monte Carlo Simulation with 10,000+ Iterations
Intended For
ROSI – Return on Security Investment
We Demonstrate the Financial Value of Every Cybersecurity Investment Before It Is Made
ROSI (Return on Security Investment) helps justify the cybersecurity budget to the board and CFO in terms of financial risk reduction. We calculate the value of each proposed control: how much risk it reduces, at what cost, and the net return on investment compared with the scenario without the control.
Quantified Scenarios
- EDR/XDR for Critical Endpoints
- MFA and Identity Management (IAM)
- SIEM and SOC/MDR Services
- WAF for Critical Web Applications
- DLP for Data Loss Prevention
- Network Segmentation and Microsegmentation
- BCP/DRP and Business Continuity
FAIR Analysis Components
- Value of the Protected Asset (Quantified in $)
- Probability of an Incident Without the Control (%)
- Control Reduction Factor (% of Risk Mitigated)
- Total Cost of the Control (TCO: License + Implementation + Operations)
- Annual Expected Loss Before the Control (Pre-Control ALE)
- Annual Expected Loss After the Control (Post-Control ALE)
- ROSI = (Pre-Control ALE - Post-Control ALE - Cost) / Cost
Intended For
Third-Party Risk Management
Management of Cyber Risk Introduced by Suppliers, Partners, and Contractors
Sixty percent of successful cyberattacks originate through third parties. XCyberShields' TPRM program establishes a systematic process to identify, assess, classify, and continuously monitor the cyber risk introduced by every supplier, technology partner, or contractor with access to the organization's data or systems.
Complete TPRM Process
- Inventory and Classification of All Suppliers
- Inherent Risk Assessment by Type of Access
- Continuous Monitoring with External Scoring Platforms
Assessment Criteria
- Type and Volume of Accessible Data (PII, Financial)
- Level of Access to Critical Systems (Production, Administrative)
- Security Certifications: ISO 27001, SOC 2, PCI DSS
- History of Incidents and Known Public Breaches
- Third-Party Supply Chain (Fourth-Party Risk)
Intended For
Risk Prioritization
Strategic Risk Prioritization to Maximize Reduction with the Lowest Investment
Not every risk can be mitigated simultaneously. We design a prioritization process based on actual financial impact, likelihood, the organization's risk appetite, and the cost-benefit of each control, enabling the CISO and board to make data-backed investment decisions.
Treatment Options
- Mitigate: Implement Technical or Organizational Controls
- Transfer: Cyber Insurance, Outsourcing, or Third-Party Contracts
- Accept: Document and Formally Approve the Residual Risk
- Avoid: Discontinue the Activity That Creates the Risk
- Escalate: Communicate Risks That Exceed Risk Appetite to the Board
Prioritization Criteria
- Annual Expected Loss (ALE) in Financial Terms
- Risk Reduction Factor by Control
- Total Cost of Control (TCO) vs. Benefit
- Implementation Time and Complexity
- Dependencies on Other Controls or Initiatives
- Organizational Risk Appetite and Tolerance
- Regulatory and Compliance Requirements
- Available Resources (Budget, Team, Time)
Intended For
C-Suite Executive Reports
Communicating Cyber Risk in Business Terms for the CISO, CFO, and Board
The greatest cybersecurity gap is not technical—it is communicational. XCyberShields' executive reports translate technical security indicators into business metrics that the CEO, CFO, and board can understand, challenge, and use to make strategic investment and risk management decisions.
Board Report Content
- Current Security Posture (Executive Traffic-Light Indicator)
- Top 5 Critical Risks in Financial Terms (USD)
- Security Investment vs. Risk Reduction (ROSI)
- Incidents During the Period: Impact and Lessons Learned
- Regulatory Compliance Status (ISO, SFC, Law 1581)
- Approval Requests: New Investments
Included KPIs and Metrics
- Current Residual Risk vs. Risk Appetite
- Security Maturity Score (1–5 by Domain)
- Third-Party Risk: Suppliers Outside the Threshold (%)
Intended For
Cyber Insurance
Assessment, Selection, and Preparation for Purchasing Cyber Insurance Policies
Cyber insurance has become an essential component of the risk transfer strategy. We support organizations in assessing their security maturity, preparing the documentation required by insurers, and selecting the optimal coverage for their risk profile.
Coverage Evaluated
- Ransomware: Ransom Payments and Recovery Costs
- Breach Notification to Regulators and Affected Parties
- Legal Defense and Regulatory Fines (Law 1581, SFC)
- Business Interruption: Lost Income Due to an Incident
- Cyber Extortion and Threats of Exposure
- Data and Systems Restoration
Preparation for the Process
- Security Maturity Assessment and Documentation of Existing Controls (EDR, MFA, Backups)
- Review of Critical Exclusions and Sublimits
- Negotiation of Policy Terms and Conditions
- Definition of Claims Procedures
- Annual Review of Coverage vs. Risk Evolution
Intended For