FAIR Cyber Risk Scenario Taxonomy (An Analyst's Guide)

Effective cyber risk management begins with well-defined risk scenarios. Organizations that clearly articulate their risk scenarios can make informed decisions, strategically allocate resources, and strengthen their overall security posture. However, many governance, risk, and compliance (GRC) programs struggle with risk registers that contain vague, irrelevant, or poorly quantified scenarios, leading to ineffective risk prioritization and misaligned security investments.

This guide provides a structured approach to defining and refining cyber risk scenarios, ensuring that they accurately represent probable loss events. By leveraging a standardized risk scenario taxonomy, organizations can enhance decision-making, improve communication, and optimize resource allocation. Additionally, this guide addresses common pitfalls in risk scenario development and offers practical strategies for improving the quality and actionability of risk registers.

With a clear understanding of cyber risk scenarios, organizations can transition from generic risk concerns to quantifiable, business-aligned risk management practices that drive better security outcomes.

We welcome feedback on this paper by emailing us at Standards <at> FAIRInstitute.org.