The FICO® Cyber Risk Score provides an empirical, reliable benchmark of cyber security risk that may be used by insurance carriers and brokers to understand and communicate the security posture of an organization. Organizations can use this metric to understand and track their own performance or share it with business partners, while insurance underwriting teams can leverage the score for risk selection, portfolio management, risk aggregation and scenario modelling efforts FICO employs a complex assessment of network assets, applies advanced predictive algorithms, and then condenses the results down to an easy-to-interpret FICO scoring metric that effectively measures enterprise risk exposure. The FICO Cyber Risk Score is a stable, long-term indication of security risk. While the score will change based on up-to-date risk indicators, the algorithm’s underlying features remain focused on network, enterprise, and behavioural characteristics that are predictive of long-range impacts rather than the transient presence of specific threats.
In addition, the FICO® Enterprise Security Suite provides cyber insurance policy management features to help an underwriter leverage their own knowledge and expertise in modelling risks and understanding aggregation points across a single risk or portfolio of risks. Underwriters can leverage population-wide distribution on claimable losses, combined with policy parameters, to calculate a range of risk metrics, such as probable maximum loss (PML). Underwriters can easily inject their organization’s historical distribution information on overall claimable loss and losses in subcategories such as legal fees, crisis management, etc.
In 2019, the FICO® Cyber Risk Score was positioned as the #1 market offering in the Chartis Research report on Cyber Risk Quantification (CRQ) products, receiving top marks for completeness of offering and market potential.
