Over the last few episodes, we have been defining and kicking the tires on What is risk quantification? So for the latest episode of GRC & Me, we wanted to go deeper and uncover the real benefits of risk quantification and how it works in businesses and with leadership.
Like all great discovery sagas, you need a wise guide who can help you find your way, and this episode had one in CISO and author Richard Seiersen. Together with LogicGates’ own Mark Tattersall, we discussed aspects of board-level conversations, what they want to see and hear and how risk quantification plays its part. Richard also told us about his experience with insurtech and how technology is a driver for consistency. This episode did not pull any punches and delivered on its promise to give us the skinny on risk quantification. Here are some of the highlights featured in this episode. You'll find the full episode here.
People Want to Know the Risk Story and Understand It
According to Richard, there has been a false mythology that executives and untrained people are "allergic and get the heebie-jeebies if you start using statistical language." Research actually shows the exact opposite. Richard told us that boards and people, in general, not only want the data, but they also want the story that good ole' fashioned statistical data tells so they can make better risk decisions.
Are You Scaling Successfully?
Richard points out that a CISO or risk leader must understand if their deployed capabilities are scaling or not. To do so, companies need to ask themselves a series of questions about how they scale.
Are they constantly scaling?
If measured over time, are they keeping up with the volume of risk created by the business?
When they are deficient and don't meet risk tolerance, can they use risk quantification to discover that?
This constant questioning and storytelling with data are hallmarks of a successful company or, as Richard puts it, "Successful businesses are in the business of exposing more value to more people through more channels at a higher velocity."