According to the World Economic Forum Report on “Risk and Responsibility in a Hyperconnected World: Pathways to Global Cyber Resilience,” which was coauthored by one of LIQUIDD’s founders, annual global cybersecurity losses are estimated at around $300 to $500 billion – and some parties have even suggested annual losses of up to $1 trillion. The extent of these losses can be crippling for banks, governments, industrial companies, small businesses and hundreds of millions of consumers.
These losses come in many forms: stolen intellectual property, contract negotiation documents, business strategies and plans, and consumer credit card information; false charges to credit cards and bank accounts; ransom charged to companies who find their hard disks locked up; and many others categories.
LIQUIDD has developed multiple models for cybersecurity risk analysis, with a focus on modeling for companies and corporations. Our intellectual property has been used in the insurance sector, for example.
Our Risk Machines software uses pertinent data inputs to calculate cyber security risks, including a cybersecurity value at risk or CyberVar.
Historic simulation takes a series of recorded cybersecurity losses, such as daily fraud losses, and analyzes the data set to forecast a confidence interval of value at risk (VaR). This VaR number is the minimum expected loss to occur, for example, in 5% of operational days. By tracking this estimated VaR amount over time, a cyber operation can get a high level insight into how well risks are being managed.