FAIR-MAM: A More Reliable Quantification of Cyber Losses

💡 FAIR-MAM: A More Reliable Quantification of Cyber Losses 

In a world where cyber threats are omnipresent, one critical question often remains unanswered: 
How much could a cyber incident actually cost my business? 

👉 That’s precisely the question addressed by the FAIR-MAM model (FAIR Materiality Assessment Model), developed by the FAIR Institute and integrated into the SAFE platform, of which DeepSafe is an official partner.  

🔍 What is FAIR-MAM? 

FAIR-MAM is an advanced extension of the FAIR™ model, the global standard for quantifying cyber risk. 
While FAIR focuses on estimating risk in terms of probability and impact, FAIR-MAM goes further by exhaustively breaking down all potential loss categories related to a cyber event. The model is based on the MECE principle (Mutually Exclusive, Comprehensively Exhaustive), ensuring that each type of loss is accounted for without overlap or omission.  

🧱 A Modular and Precise Structure 

FAIR-MAM includes 10 main categories of loss (business interruption, data breach, extortion, legal exposure, reputational damage, etc.), each broken down into detailed subcategories to provide a granular and defensible assessment of the total cost of an incident. 

👉 Example: Business interruption losses can be modeled differently depending on whether they affect a manufacturing plant, an e-commerce platform, or a critical cloud-based service.  

📊 A Response Aligned with Regulatory Expectations 

Following the latest SEC (Securities and Exchange Commission) rulings, publicly traded companies in the U.S. are now required to report material cyber incidents within 4 business days — that is, incidents deemed likely to influence investor decisions. 🔧 With FAIR-MAM, incident response teams can estimate materiality within hours, thanks to real-time tracking of financial loss evolution.  

✅ Tangible Benefits of FAIR-MAM for Organizations 

1. Model losses with precision 
   No more rough estimates — each damage category is quantified with unprecedented clarity and structure. 

2. Improve decision-making speed 
   In the midst of an incident, leaders can make faster, more informed choices on regulatory disclosure or remediation actions. 

3. Anticipate high-impact scenarios 
   Even before an incident occurs, FAIR-MAM helps identify the most financially damaging scenarios, guiding cybersecurity investments. 

4. Communicate clearly with stakeholders 
   Whether it’s the board, auditors, or regulators, FAIR-MAM provides transparent, data-driven, and defensible estimates.