Cyber Value at Risk (Cyber VaR)

Cyber Value at Risk applies the Value at Risk concept specifically to cyber events. It expresses the potential financial loss from cyber incidents over a time horizon at a confidence level, derived from a model of the organization's assets and their exposure.

Cyber VaR is typically produced with quantitative methods such as Monte Carlo loss modeling, which capture both expected losses and the expensive tail. Its purpose is communication and prioritization: a single, defensible dollar figure that can be tracked over time and tied to the cost and benefit of security investments.