By: Udit Narang, Director at LTIMindtree

As CISOs or cybersecurity decision-makers, how often do you come across questions such as “Am I on top of my cybersecurity risks?” “What are the cyber implications of the LLM and AI systems deployed?” “How can I make smart and fast decisions regarding cybersecurity strategies?” Or “In the event of a cyberattack, how much will it cost to return to business as usual or regain customer trust?”

Many cybersecurity leaders find it difficult to answer these questions and make informed decisions. Cyber risk quantification (CRQ) helps address this challenge. This blog post explores CRQ’s role in enterprise cybersecurity strategy, its evolution, and how to avoid common barriers.

What is CRQ?

Simply put, CRQ calculates the potential costs of a cyberattack and the expenses required to reduce its likelihood and impact. This approach  helps prioritize actions based on financial impact in the event of a breach.

Cyber Risk Quantification has become one of the most powerful tools in boardroom discussions. It enables Chief Information Security Officers (CISOs) to clearly communicate cyber risks to the board and support effective decision-making. It helps bridge the gap between technical and functional risks and their impact on customer experience, sales, brand value.

Why is the it important?

Let’s explore why CRQ is crucial today. When implemented well, it allows CISOs and cybersecurity leaders to:

History and what to look out for in 2025 and beyond

Over the years, threats and attack vectors have continuously evolved across industries and regions. In this section, let’s examine the major contributors to cyber risks that have concerned the security community over the past decade.

• Social engineering, lack of employee awareness, ransomware, espionage, cyber warfare, and cloud security have been consistent threats. Spam and phishing emails, often delivered through unaware users, remain prevalent. Microsoft, DHL, and Google are among the frequent targetsⁱ.
• More recently, supply chain attacks, remote work vulnerabilities, IoT security, 5G concerns, and evolving regulations have gained prominence. Organizations and vendors often share sensitive data, increasing exposure. A recent example is Hertzⁱⁱ, the rental car giant, which confirmed a data breach due to a vendor-related attack. JP Morgan’s Global Chief Information Security Officer, Patrick Opet, emphasized the expanding threat landscape in his article, “An Open Letter to Third-Party Suppliersⁱⁱⁱ.”
• The landscape in 2025 and 2026 will be significantly different. The sheer increase in the volume of the above attacks, supply chain vulnerabilities, and the rise of AI, LLM, machine learning, and post-quantum-driven threats will dominate the list of priorities for CISOs and key decision-makers. Geopolitical tensions and natural disasters will also play a role.

While AI systems are being rapidly deployed to enhance productivity, many organizations struggle to quantify the risks associated with these technologies. Though security controls are applied, it is insufficient if the risks these systems pose to the organization cannot be identified, prioritized, and quantified. The details regarding the Ws of Agentic AI and LLM systems deployed—specifically the What, Where, When, and hoW confidential data is stored and Who accesses it will become crucial.

You can’t manage every risk. Effective Cyber Risk Quantification helps identify the most significant ones, prioritize them, and deprioritize low-impact threats.

Challenges to effective CRQ

Despite progress, challenges to effective CRQ persist. Rapid technological advancements demand constant updates to risk management frameworks. New attack vectors emerge regularly. Budget constraints, particularly in small and midsize enterprises, hinder adoption.

Still, many organizations, especially in the banking, financial services, and insurance (BFSI) sectors, have integrated cyber risks into their overall risk management strategies. Other industries such as pharmaceuticals, healthcare, energy and utilities, manufacturing, and retail are beginning to catch up. This progress has fueled investment in advanced models and platforms to better quantify cyber risks.

Best practices for effective CRQ

Effective cyber risk quantification requires focus and precision. The goal should be accurate measurement with minimal effort. Consider these recommendations for effective CRQ:

Conclusion

The stakes have never been higher, and they will only continue to rise in 2025 and beyond. We’ve seen how even a single cyberattack, or a series of them, can bring enterprises to a standstill. In such a volatile threat landscape, organizations that overlook cyber risk quantification (CRQ) risk being blindsided. CRQ is no longer a “nice-to-have”; it’s a foundational element of modern cybersecurity strategies.

By accurately measuring and analyzing the financial and operational impacts of cyber threats, CRQ enables informed decision-making—whether you’re evaluating the ROI of automation, prioritizing remediation efforts, or investing in AI-driven defenses. It transforms cybersecurity from a reactive, cost-driven activity into a proactive business enabler.

Effective CRQ demands a thoughtful balance of technology, governance, skilled people, and ongoing training. It’s a layered approach—one that service partners like LTIMindtree often help operationalize through practical frameworks and scalable platforms. Still, you don’t need to start big. Even incremental efforts to quantify and communicate cyber risk can make a measurable difference in building board-level confidence and organizational resilience.

In the end, cyber risk quantification is about clarity. It helps you focus on what matters most, protect what’s critical, and make the trade-offs that move your business forward—with confidence.

If you’d like to explore how to bring CRQ into your cybersecurity planning, our advisors are here for a no-obligation conversation.

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Citations

ⁱ 60+ Social Engineering Statistics [Updated 2025], Secure Frame, Emily Bonnie, Rob Gutierrez, December 31, 2024:https://secureframe.com/blog/social-engineering-statistics

 ⁱⁱ Hertz data breach exposes customer information, FOX News, April 25, 2025:https://www.foxnews.com/tech/hertz-data-breach-exposes-customer-information

ⁱⁱⁱ An Open Letter to Third-Party Suppliers, JP Morgan:https://www.jpmorgan.com/technology/technology-blog/open-letter-to-our-suppliers