Cyber Risk Quantification Methodologies: A Practical Comparison
Kovrr, Monday, July 20th, 2026
A comparison of frameworks and statistical models for translating cyber risk into financial estimates.
The article distinguishes CRQ frameworks such as FAIR and NIST SP 800-30, which structure thinking, from models such as Monte Carlo simulation and Bayesian networks, which produce quantified outputs.
It explains how cyber risk exposure equals breach likelihood multiplied by breach financial impact, the foundation of most methodologies. Guidance covers methodology selection based on audience needs, data maturity and operational workflows.
Common pitfalls include confusing frameworks with models and treating quantification as a one-time exercise rather than a continuous process.