The Forrester Wave™: Cybersecurity Risk Ratings Platforms, Q2 2024

Blog April 9, 2024

SecurityScorecard Unveils the Industry’s Most Predictive Cybersecurity Risk Ratings with Refined Scoring Algorithm

by Dr. Bob Sohval, VP & Fellow, Data Science & Madelyn Maletz, Associate Product Marketing Manager
by Dr. Bob Sohval, VP & Fellow, Data Science & Madelyn Maletz, Associate Product Marketing Manager

Now more than ever, the specter of cyber threats looms large over organizations of all sizes and sectors. The consequences of a data breach stemming from just one vulnerability can be catastrophic, ranging from financial losses to irreparable reputational damage. As businesses strive to reinforce their defenses against these evolving threats, the need for a reliable and predictive cybersecurity risk assessment tool has never been greater. 

Across the globe, organizations battle with the challenge of mitigating cyber risks, particularly those posed by third-party vendors. The 2023 “Cost of a Data Breach Report” by IBM and the Ponemon Institute highlights the staggering financial toll of data breaches, with the average cost reaching a record-high of USD 4.45 million per breach. Moreover, SecurityScorecard’s own Global Third-Party Cybersecurity Breach Report found that 75% of third-party breaches targeted the software and technology supply chain. Given this, security ratings have emerged as a crucial benchmark for assessing an organization’s cybersecurity resilience and its vulnerability to breaches.

 

 

The evolution of security ratings

Much like financial credit ratings, which gauge an individual’s or entity’s creditworthiness, security ratings provide an objective measure of an organization’s cybersecurity posture. SecurityScorecard’s approach to security ratings leverages a robust algorithm that analyzes over 200 different measurements across ten key cybersecurity factors. These factors offer a comprehensive view of an organization’s security readiness, and encompass critical aspects such as: Application Security; DNS Health; Patching Cadence; and Endpoint Security; and more.

Driving scoring innovations with data science

At SecurityScorecard, we are committed to pushing the boundaries of cybersecurity excellence through continuous innovation. To further enhance the accuracy and predictive power of our ratings, we embarked on a groundbreaking study leveraging advanced machine learning techniques and artificial intelligence. Drawing insights from a vast dataset of over 15,000 breaches, our data scientists identified key issue types with significant predictive capabilities for breaches. 

The power of predictive analytics

The results of our study speak volumes about SecurityScorecard’s ratings and their correlation with the relative probability of sustaining a data breach. Organizations with higher security  ratings demonstrate a significantly lower likelihood of experiencing a breach compared to their counterparts with lower ratings. In fact, our analysis revealed that organizations with an F rating are 13.8 times more susceptible to breaches than those with an A rating. By calculating our ratings using issue type weights, our overall A-F score is not only easier  to interpret but also more reflective of breach and other score implications.

Setting the standard for precision

With a 79% improvement in the correlation between SecurityScorecard ratings and breach likelihood, our ratings set a new industry standard for precision and reliability. This heightened level of accuracy empowers our users to make informed decisions and proactively mitigate cyber risks, safeguarding their digital assets and reputation.

The imperative for transparency and trust

At SecurityScorecard, transparency is absolutely essential. We believe in providing our users with clear and actionable insights into their cybersecurity posture. That’s why our scoring methodology is outlined in detail in our Trust Portal, ensuring trust, transparency and ease of monitoring for our valued users.

Empowering users with actionable insights

By harnessing the power of data-driven analytics and leveraging one of the largest datasets in the industry, SecurityScorecard equips cybersecurity practitioners and risk managers with the tools they need to navigate today’s complex threat landscape with confidence. Our predictive ratings offer a reliable benchmark for assessing both enterprise and third-party risk, enabling organizations to stay one step ahead of cyber threats.

SecurityScorecard’s commitment to cybersecurity resilience

As cyber threats continue to evolve in both sophistication and scale, SecurityScorecard remains committed to empowering organizations with the insights they need to mitigate risk and protect their most valuable assets. SecurityScorecard is leading the charge towards a more secure and resilient digital future with ratings highly correlated with breach risk. We are committed to providing you with the most meaningful cybersecurity ratings to safeguard your organization against cyber threats, today and beyond.

 

Get your Free Score today and take control of cybersecurity risk across your own attack surface.

Get your Free Score today