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What Does a Security Rating Mean?

SecurityScorecard security ratings are easy-to-understand ratings, depicted on an A-F scale, that analyze the cyber health of an organization across ten groups of risk factors. SecurityScorecard's statistically robust framework documents the fact that a company with a C, D, or F rating is 5 times more likely to suffer a consequential breach versus an A- or B-rated company. Certain risk factors, such as application security and patching cadence, are even more indicative of the likelihood of a breach.

What is the need for a security rating?

Security ratings make it possible for organizations to easily gain visibility into their cybersecurity vulnerabilities, as well as those of their supply chain vendors. They provide a way for organizations to continuously monitor their cybersecurity posture, prioritize risks for remediation, and make informed data-driven business decisions.

How are security ratings used?

Security ratings can help IT teams navigate various aspects of cybersecurity management, both internally and externally. Take a look at common use cases for security ratings:

Continuous monitoring

Traditional point-in-time security assessments are becoming obsolete as threats continue to rapidly advance in volume and severity. Security ratings allow IT teams to gain a comprehensive hacker’s perspective into an organization’s IT infrastructure. This enables them to proactively manage and prioritize cybersecurity risks.

Third-party risk management (TPRM)

Organizations are increasingly relying on third-party vendors to facilitate many day-to-day operations. While this is beneficial for streamlining purposes, it opens organizations up to new attacks that may be associated with or brought on by a third-party vendor. With the impact of a third-party data breach reaching new highs, it’s clear why organizations need an effective TPRM program.

M&A due diligence

Due diligence is a crucial step in merger and acquisitions processes, and understanding the state of a target company’s cyberhealth is crucial. Security ratings can help IT teams identify vulnerabilities within their network so organizations can be fully aware of the risk they may be inheriting by taking on or working with a particular company.