What is the FAIR Risk Methodology?

The FAIR (Factor Analysis of Information Risk) methodology is a quantitative risk analysis framework used to assess and manage information security risks. It provides a structured approach for organizations to quantify cyber risks in financial terms, allowing for more informed decision-making and resource allocation.

The FAIR model breaks down risk into distinct components, including threat events, vulnerabilities, potential impacts, and the frequency of occurrence. By applying probabilistic analysis and mathematical models, FAIR enables organizations to estimate the probable frequency and magnitude of losses associated with specific risk scenarios.

This methodology helps organizations prioritize risk mitigation efforts based on their potential impact on business objectives and financial outcomes. FAIR enhances cyber risk management practices by providing a standardized, defensible, and actionable approach to understanding and quantifying cybersecurity risks.

See Also: 

• Cyber Risk Quantification Models 
• NIST SP 800-30

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