How is Cyber Risk mathematically represented?

Cyber risk is mathematically represented as Risk = (Vulnerabilities x Threats) x Impact because this formula captures the essential components of risk in a comprehensive manner. In cybersecurity, risks arise when vulnerabilities are exploited by threats.

Vulnerabilities represent the weaknesses in a system that can be exploited, and threats are the potential dangers that can exploit those weaknesses. By multiplying vulnerabilities by threats, the equation effectively quantifies the potential number of incidents that can occur if a threat exploits a vulnerability.

The impact component of the equation takes into account the consequences or effects of a successful exploit, giving a weighted measure to the risk. This multipliers-in-play indicate that both the presence of vulnerabilities and the nature of threats influence the overall risk level. The higher the vulnerabilities and threats, or the greater the impact of those threats, the higher the overall risk becomes, making this formula a comprehensive approach to understanding cyber risk.

The other choices do not effectively convey the relationship between these critical factors in assessing cyber risk.