Once you’ve purchased and set up Risk Cloud Quantify, you can start to quantitatively analyze your Risk Scenarios using the Open FAIR™ model to determine your loss exposure for each risk.
The Risk Quantification application template comes pre-built with an Analysis workflow that contains the key fields and conditional logic you need to complete your FAIR analysis.
At each step, you will be asked whether you have information to enter numerical values for frequency and magnitude or whether you need to derive those estimates from lower levels in the FAIR tree. For example, if you do have estimates for Loss Event Frequency readily available, you will be asked to enter minimum, maximum, most likely, and confidence values for Threat Event Frequency and Vulnerability to derive Loss Event Frequency.
The pre-built Analysis workflow also contains guidance text and definitions to guide your understanding.
You will be able to run an Analysis report on any step in your Analyses workflow that contains the Analysis Report section. This section will come pre-configured in our Risk Quantification application template.
In an Analysis Report section, you can configure whether:
- The current assignee can run an analysis or only view a previously-run analysis
- To highlight a column other than Most Likely in the summary statistics
Run an Analysis
Once you are ready with your inputs, click the Run Analysis button in the Analysis Report section of your record page. An alert will appear if any inputs do not pass validations.
Once you’ve fixed your inputs, click Run Analysis again to generate your loss exposure breakdown. Congratulations!
If you realize that any of your inputs need to be updated after you run your analysis, you can always update your inputs on your record and return to your Analysis Report to re-run your analysis. You’ll see an alert that your inputs have been modified and the Run Analysis button will be re-enabled.
The result of your Risk Quantification analysis in Risk Cloud is 50,000 simulated results of loss exposure that is used to generate your loss exposure curve and summary statistics.
Minimum, Median, and Maximum
The Minimum, Median, and Maximum is the 0th, 50th, and 100th percentile of the 50,000 simulated results when the simulated values are arranged in ascending order.
The average is a simple mean of the 50,000 values generated from the simulation.
The resulting 50,000 values are separated into bins similar to a histogram. The size of bins are dynamic based on a percentage of the simulated result's range. The calculation ends when the number of values in the final bin are less than 100 and the median of that bin is selected as the Most Likely value.