DeNexus named in two Gartner® reports

DeNexus has been recognized in two Gartner reports: ‘Market Guide for Operational Technology Security’¹ and ‘Hype Cycle™ for Cyber Risk Management^,2 2022’ for its cyber risk modeling technology.

Here, Srikant Rachakonda, Director of Product Management at DeNexus, explains why this is a significant recognition of DeNexus, and why the reinsurance and Insurance-Linked Securities (ILS) community can start trusting cyber technology to help them properly address the dynamic nature of cyber risks.

Why do we think that a Gartner recognition is important?

DeNexus is pleased to be recognized by Gartner in two reports. The firm views Gartner reports as credible sources of insight. Gartner Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or other innovation.³ A Gartner Magic Quadrant™ is a culmination of research in a specific market, giving you a wide-angle view of the relative positions of the market’s competitors.⁴ 

DeNexus is part of a second generation of cyber modeling that gives specific insight about cyber risk exposures. The first generation of cyber modelers were non-specific – they took a one-size fits all approach. However, the second generation is driven by data, gained from going ‘inside’ the facility to get specific data related to that operation. That data will help two main stakeholders - the owner of the risk and the underwriter of the risk.

In our opinion, while there is no magic wand to immediately find a solution to a complex issue such as cyber risk, DeNexus’ inclusion in this Gartner ‘Hype Cycle for Cyber Risk Management under the category Cyber-Physical Security (CPS) Risk Management‘, means that its cyber modeling is deemed fit for purpose.

Moreover, we believe the Gartner Hype Cycle is a way for its readers to track technology maturity and future potential. The report classifies the CPS Risk Management as emerging, and DeNexus is  named as one of the Sample Vendors in this category.

DeNexus’ role in the ecosystem:

DeNexus has launched a series of cyber models, which are constantly improving and aimed at helping industrial organizations, underwriters, reinsurers, and ILS investors fully understand the real risks associated with cyber breaches.

Our DeRISK platform gives industrial companies and risk underwriters the ability to quantify and manage cyber risk exposure, continuously.

The benefits for re/insurers and ILS investors are:

• Enhancing the cyber underwriting processes to enable new cyber re/insurance and ILS offerings with confidence.

• Solutions for risk stakeholders built in accordance with consistent and proportionate policy options for industrial clients, re/insurers, and ILS investors.

• Increases the accuracy in determining systemic risk events for appropriate risk capacity commitments for re/insurers and ILS investors.

• Measurements of single risk exposure and accumulation of risk, as well as control measures to determine the maximum loss from a cyber event and capital allocation.

• Detailed analysis of risk exposure to enable re/insurers and ILS investors to improve and prioritize capital budgets for cyber risk.

Why does this matter to the ILS and reinsurance community?

We believe, this recognition is great news for reinsurers and ILS investors. It means they can start to trust cyber modeling.

We are using ‘inside/outside data’ to predict how an attacker would behave if they started to breach a network. We use clever and complex technology to predict all the paths an attacker can take.

That data is extremely useful when it comes to insurance. This is because typically companies do not have access to this kind of data – they are usually looking at a risk from the outside in, which is less accurate. Whereas, our inside information using real and verifiable data enables a more realistic risk assessment – and therefore, companies can buy more suitable insurance products.

• Gartner, “Market Guide for Operational Technology Security”, Katell Thielemann, Wam Voster, et al., August 4, 2022.

• Gartner, “Hype Cycle for Cyber Risk Management, 2022”, Jie Zhang, Deepti Gopal, July 27, 2022.

• Gartner, " Understanding Gartner’s Hype Cycles”, Philip Dawson, Alexander Linden, et al., July 2, 2021.

• Gartner, “Gartner Magic Quadrant”, [https://www.gartner.com/en/research/methodologies/magic-quadrants-research].

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Find out more about Second generation risk platform DeRISK here.