FAIR (Factor Analysis of Information Risk)

Factor Analysis of Information Risk is the only internationally recognized standard quantitative model for information security and operational risk. It provides a framework for expressing cyber risk in financial terms by modeling Loss Event Frequency and Probable Loss Magnitude. Unlike qualitative risk frameworks that rely on color charts or weighted scales, FAIR produces dollar-denominated outputs that support direct business comparisons and decision-making. Black Kite integrates FAIR-based financial quantification directly into the platform, producing probable financial impact ratings across Data Breach, Ransomware, and Business Interruption scenarios. Open FAIR™ is an industry standard, not proprietary to any single vendor.