‍ “All models are wrong, but some are useful.” ‍ In the earliest days of cyber risk management, chief information security officers (CISOs) generally relied on matrices and other subjective risk assessments for strategic planning.

‍ Over the past few decades, cyber attackers have increasingly wreaked havoc on the market, taking advantage of newer, more sophisticated ways to exploit system vulnerabilities. However, in fear of losing competitive advantages, organizations had notoriously downplayed the impact of these attacks, misleading investors and resulting in stock prices that did not accurately represent the risk landscape. ‍

‍ ‍ Chief information security officers (CISO) or respective organizational cybersecurity leaders are most likely well aware of the cybersecurity risks their organizations face. However, being aware of and communicating important cyber risk management data to the board of directors are two entirely different matters.

Cybersecurity maturity assessments play a fundamental role in helping chief information security officers (CISOs) determine the level of risk their organizations face due to cyber activity. By illuminating the various areas that are exposed to exploitation, these evaluations serve as a blueprint for cybersecurity leaders tasked with making the business secure amid an increasingly risky operational landscape.

‍ ‍No organization, no matter the industry, is exempt from suffering from a cyber attack. The European Union formally recognized this modern-day reality in late 2022 when it published Directive (EU) 2016/1148, more commonly known as the NIS 2 Directive. As an updated version of the original directive enacted in 2016, this newer, sweeping cybersecurity regulation expanded its original scope to encompass even more business sectors.

‍ Today, cybersecurity is evolving into cyber risk management. The last few decades of immense technological and digital transformations have meant that, to a large extent, a business’s ability to be resilient is dependent on a reliable, free flow of data and on technology functioning without interruption. This shift has profound implications for the global economy’s ability to remain stable. ‍

Private equity (PE) firms have a unique power in the global marketplace, independently fostering innovation, creating jobs, and propelling economic growth. These entities infuse capital into a spectrum of industries throughout the business life-cycle, intent on delivering superior returns to investors while effectively navigating the complexities of the broader threat landscape.

‍Market success has often demanded that business leaders take risks. Some of the most profitable executives are those who have pursued bold initiatives, recognizing, despite the dangers, the potential rewards. However, as organizations grow and become more complex, the costs of these risks rise, demanding a more data-driven approach to its management.

‍ For chief information security officers (CISOs), understanding how their organization's unique cyber risk landscape has evolved is paramount. Chronological analysis not only enables risk trends to emerge with more clarity but also provides the essential context required for more informed decision-making.

Rome wasn't built in a day. It took architects, city planners, and laborers many years to construct it, making small developments every day. Just as with Rome, cybersecurity programs, too, require significant time and investment to come to fruition. ‍ However, without knowing their initial cyber risk exposure, it can be challenging for stakeholders to comprehend the full value that cybersecurity initiatives have already delivered to the organization.