Question 1

What is the FAIR Risk Estimator?

Accepted Answer

The FAIR Risk Estimator is a free browser-based tool that calculates your organisation's Annualised Loss Expectancy (ALE) using three inputs from the FAIR (Factor Analysis of Information Risk) model: Threat Event Frequency (how often a threat occurs per year), Vulnerability (probability it succeeds), and Loss Magnitude (₹ impact per event). It is designed for Indian BFSI CISOs and risk teams.

Question 2

How do I calculate ALE for cyber risk using FAIR?

Accepted Answer

ALE = Threat Event Frequency × Vulnerability % × Loss Magnitude. For example, if ransomware hits 4 times/year with a 30% success rate and ₹500 lakh per event, ALE = 4 × 0.30 × 500 = ₹600 lakh/year. The estimator automates this and provides a BFSI peer percentile benchmark.

Question 3

How does this tool relate to SEBI CSCRF compliance?

Accepted Answer

SEBI CSCRF requires entities to conduct Cyber Risk Quantification (CRQ) as part of the GV (Governance) function. The FAIR model is one of the accepted methodologies. This estimator produces a board-ready ALE figure that can be cited in the CSCRF self-assessment and reported to the board.

Question 4

What is ALE (Annualised Loss Expectancy)?

Accepted Answer

ALE is the expected monetary loss from a threat scenario in one year, calculated as: ALE = Threat Event Frequency (TEF) × Single Loss Expectancy (SLE), where SLE = Asset Value × Exposure Factor. In the FAIR model, SLE is approximated by Loss Magnitude × Vulnerability probability.

Question 5

Is this FAIR Risk Estimator free to use?

Accepted Answer

Yes, the FAIR Risk Estimator is completely free, runs entirely in your browser, and stores no data. No login or registration is required.