Spotlight

Report:

The Forrester Wave™: Cyber Risk Quantification, Q3 2023

How does Forrester define the Cyber Risk Quantification market in 2023?

Cyber risk quantification (CRQ) solves the cost problem in cybersecurity and privacy programs by enabling cyber risk professionals to prioritize control implementations, vulnerability mitigations, and risk transfer strategies; measure the risk-reduction ROI of investments; and communicate risk exposure in financial terms. While firms have struggled to implement CRQ due to lack of data, analytical skill sets, and internal buy-in, vendor investment in CRQ tools is increasing through advanced data automation, integration capabilities, and quantitative skill training.

Key Facts for The Forrester Wave™: Cyber Risk Quantification, Q3 2023 in 2023

How did the Cyber Risk Quantification market evolve in 2023?

What product features are required to be included in this year's evaluation?

What are the common features of top products in the Cyber Risk Quantification space?

No common features specified.

Scope Exclusions

Inclusion Criteria

Vendors must, among other requirements:

Offering Strengths — Relative Weighting

Strategy Strength — Relative Weighting

FAQs

Q: What does this research cover?

A: This research evaluates the top eight cyber risk quantification (CRQ) providers across 26 criteria. It assesses vendors' current offerings (methodology, data, analytics, reporting, user experience, integrations, workflow), strategy (vision, innovation, roadmap, partner ecosystem, adoption, pricing), and market presence. The evaluation identifies Leaders, Strong Performers, Contenders, and Challengers to help cyber risk professionals select the right CRQ solution for their needs.

Q: Who should use this research?

A: Cyber risk professionals, CISOs, security leaders, and risk management teams should use this research when evaluating and selecting CRQ providers. It's particularly valuable for organizations looking to prioritize control implementations, measure risk-reduction ROI, communicate risk exposure in financial terms to executives, and make data-driven decisions about vulnerability mitigation and risk transfer strategies. The research helps buyers compare vendors and adapt evaluation criteria to their specific requirements.

Q: What are the mandatory features of vendors included in this market?

A: All vendors included in this evaluation must have: 1) $5 million or more in global revenue directly from their CRQ solution, 2) A proprietary (not white-labeled) discrete CRQ technology offering, 3) A broad range of use cases enabling holistic cybersecurity risk management including built-in capabilities for risk identification, scenario modeling, quantitative (probabilistic) analysis, risk remediation planning, and risk reporting, and 4) Demonstrated interest from or relevance to Forrester clients based on inquiries, interviews, or warranted inclusion due to capabilities and market presence.

Q: What are some reasons for not being included in this report?

A:

  • Revenue below $5 million threshold for CRQ-specific solutions
  • Offering white-labeled or non-proprietary technology solutions
  • Lacking comprehensive quantitative capabilities across the full risk management lifecycle
  • Insufficient client interest or market relevance to warrant inclusion
  • Using semi-quantitative or qualitative assessment methodologies rather than true probabilistic CRQ
  • Declining to participate in the evaluation process (marked as non-participating vendors)

Q: What should buyers consider when evaluating products in this market?

A:

  • Flexible risk modeling and drill-down functionality with automated and manual options for scenario identification and modeling
  • Easy integration with existing security technology stacks through native tool integrations
  • Alignment with industry standards and frameworks (NIST CSF, CIS Controls, MITRE ATT&CK, FAIR) for traceability
  • Adherence to cyber value-at-risk (VaR) model with scenario-based risk definition, measurable variables, probabilistic analytics, and financial risk expression
  • Data automation capabilities to streamline risk input gathering from assets, vulnerabilities, controls, and threats
  • Comparative analysis and decision support features for evaluating control effectiveness and ROI
  • Vendor innovation strategy and product roadmap alignment with customer needs
  • Training and enablement programs for quantitative skill development
  • Transparent pricing models appropriate to organizational size and use cases

Q: How has the Cyber Risk Quantification market evolved in 2023?

A:

  • Increasing investment in CRQ tools as firms struggle with implementation challenges
  • Vendors delivering advanced data automation and integration capabilities to streamline risk analysis
  • Provision of quantitative skill training to address analytical skill gaps
  • Expansion of native integrations with security tools to automate risk telemetry gathering
  • Growing emphasis on flexible modeling approaches combining automated and manual options
  • Alignment with industry standards and frameworks (NIST CSF, CIS Controls, MITRE ATT&CK, FAIR)
  • Shift toward cyber value-at-risk (VaR) models using probabilistic analytics
  • Focus on improving communication and traceability across security and risk teams

Q: What differentiates Strength of Offering vs. Strength of Strategy?

A: Current offering evaluates the strength of a vendor's existing product capabilities across methodology, data, analytics, reporting, user experience, integrations, workflow, and end-user program development (vertical axis positioning). Strategy evaluates the vendor's future direction and market approach through vision, innovation, roadmap, partner ecosystem, adoption strategy, and pricing model (horizontal axis positioning). Market presence (bubble size) reflects revenue and customer count.

Reference

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