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1 | A Deep Dive in Scoring Methodology
A Deep Dive
in Scoring
Methodology
By Bob Sohval, PhD
VP Data Science
©2023 SecurityScorecard Inc. All Rights Reserved.

2 | A Deep Dive in Scoring Methodology
Cybersecurity Ratings . . . . . . . . . . . . 3
What do Scores Mean? . . . . . . . . . . . . 4
Factor Scores 4
Cybersecurity Signals . . . . . . . . . . . . 5
Signal Processing Workflow . . . . . . . . 21
Signal Collection 22
Attribution Engine 23
Cyber Analytics 24
Scoring Engine 25
Scoring Methodology . . . . . . . . . . . 26
Size Normalization 27
Calibration Process 28
Calculating Factor Scores 28
Version 2 0:
Calculating Raw Factor Score 29
Calculating Total Score 29
Version 3 0:
Calculating Raw Factor Score 30
Calculating Total Score 30
Breach Penalty 31
Keeping the Scoring Framework Current. . . 32
Calibration Cadence 32
Industry Comparisons . . . . . . . . . . . 33
Collaboration with End Users . . . . . . . . 34
Validation . . . . . . . . . . . . . . . . . 35
Limitations . . . . . . . . . . . . . . . . 36
FAQ . . . . . . . . . . . . . . . . . . . . 37
Table of Contents
2 | A Deep Dive in Scoring Methodology


3 | A Deep Dive in Scoring Methodology
SecurityScorecard evaluates
organizations’ security profiles
non-intrusively, using an
‘outside-in’ methodology.
This approach enables SecurityScorecard
to operate at scale, measuring and updating
cybersecurity ratings daily on more than one
million organizations globally.
The rise of the internet and its global role in e-commerce, business operations,
commu-
nications, and social media, has created both opportunities and risks. While it
can fuel
economic growth and speed up the dissemination of news and ideas, the existence
of
vulnerabilities in commonly used software products and services, and poor
adherence
to recommended security practices can expose organizations to significant
financial
and reputational harm at the hands of malicious actors — including both
individuals
and nation states.
Cybersecurity ratings provide a means for objectively monitoring the security
hygiene of organizations
and gauging whether their security posture is improving or deteriorating over
time. The ratings are
valuable for vendor risk management programs, determining risk premiums for
cyber insurance,
credit underwriting and financial trading decisions, M&A due diligence
information, executive-level
reporting, and for self-monitoring. Cybersecurity ratings, and the extensive
information on which they
are based, are also helpful for assessing compliance with cybersecurity risk
standards.
Cybersecurity Ratings
3 | A Deep Dive in Scoring Methodology




































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