Quantify cyber risk in financial terms using the FAIR (Factor Analysis of Information Risk) model. Calculate Annual Loss Expectancy (ALE) = Annualized Rate of Occurrence × Single Loss Expectancy.
The Cyber Risk Quantification (FAIR) Calculator works by applying a well-defined formula to the values you enter. Understanding the formula behind the calculation helps you interpret the result and check that your inputs are correct. Below we break down the key components that drive the Cyber Risk FAIR.
The core formula used by this calculator is:
Result = f(inputs, settings)
Each variable in the formula has a specific meaning: