Cybersecurity KPIs for executives: managing risk without being a tech expert

Cybersecurity KPIs for executives: managing risk without being a tech expert

Introduction

Cybersecurity is often perceived as a technical subject. However, cyber risk is first and foremost a business risk.

The Federal Office of Cybersecurity emphasizes that incidents affect organizations of all sizes in Switzerland (FOCS, Semi-annual Report, https://www.ncsc.admin.ch ). For an SME manager, the issue is not understanding the code or network architectures, but having simple indicators to manage the risk.

Objective: to identify cybersecurity KPIs that are directly useful for governance, budgetary decision-making and insurability.

1. Why have cybersecurity KPIs at the management level?

1.1 A strategic risk, not just a technical one

An attack can lead to:

• Business interruption

• Damage to reputation

• Mandatory notification in case of data breach

The Federal Data Protection Act mandates notification to the Federal Data Protection Commissioner in the event of a high-risk data breach (Art. 24 nLPD, Fedlex, https://www.fedlex.admin.ch ). Cybersecurity risks therefore entail management responsibility.

1.2 Direct link with insurability

Cyber insurers assess IT maturity using structured questionnaires. The level of internal control influences:

• Acceptance of risk

• Coverage conditions

• Franchises

• Exclusions

Monitoring concrete indicators helps to align governance and insurability.

2. The 5 essential cybersecurity KPIs for executives

2.1 MFA Deployment Rate

Indicator: proportion of critical accounts protected by multi-factor authentication.

Why this is strategic:

MFA is widely recognized as an effective measure to reduce the risk of account compromise (ENISA, Guidelines on MFA, https://www.enisa.europa.eu ).

Lead reading:

• Are all remote access points covered?

• Are administrator accounts protected?

A partial reading indicates a blind spot.

2.2 Success rate of restoration tests

Indicator: frequency and success of backup restoration tests.

The OFCS recommends regularly testing backups to ensure their usability in the event of an attack (OFCS, ransomware recommendations, https://www.ncsc.admin.ch ).

Lead reading:

• Are the backups tested?

• Is the restoration timeframe compatible with business continuity?

An untested backup is not a backup.

2.3 Average time to deploy patches

Indicator: time between the publication of a critical patch and its deployment.

Known vulnerabilities are frequently exploited by attackers (ENISA, Threat Landscape, https://www.enisa.europa.eu ).

Lead reading:

• Is there a formalized process?

• Are critical fixes being addressed as a priority?

Excessive delay increases exposure.

2.4 Internal Phishing Rate

Indicator: percentage of employees who clicked during phishing simulations.

Awareness-raising is an essential component of organizational measures (PFPDT, technical and organizational measures, https://www.edoeb.admin.ch ).

Lead reading:

• Are the campaigns regular?

• Does the rate decrease over time?

A high indicator calls for increased training.

2.5 Incident detection time

Indicator: average time between compromise and detection.

The faster the detection, the more the impact can be limited.

Lead reading:

• Are there centralized alert systems?

• Who analyzes these alerts?

A long delay increases the risk of data exfiltration.

Mini case study 1

An SME tracks a simple indicator: 100% of administrator accounts must be protected by MFA. During an internal audit, two historical accounts were found to be lacking protection. Immediate correction prevented a major exposure. This KPI served as a safety net.

3. Build a readable dashboard

3.1 No more than 6 indicators

A management dashboard should be:

• Synthetic

• Stable over time

• Comparable from one quarter to the next

3.2 Example of structure

KPI Target Objective Trend Management Comments

MFA Rates Full Coverage of Critical Accounts Progressing Quarterly Priority

Restoration tests. Documented test performed periodically. Stable. OK.

Critical patch timeframe Formalized process Needs improvement IT budget

Phishing rate: Continuously decreasing, Improving, Targeted training

Detection Time Progressive Reduction Stable EDR Study

No generic figures are proposed here: each SME must define its own thresholds according to its risk profile.

4. Direct link between KPIs and cyber insurance

4.1 Insurer Questionnaire

Insurers typically ask about:

• MFA

• Backups

• Incident Response Plan

• Awareness

Tracked and documented KPIs facilitate reporting.

4.2 Negotiation of terms

Demonstrable governance can support:

• A better assessment of risk

• A reasoned discussion on franchises and limits

Regular monitoring strengthens credibility with the insurer.

Mini case study 2

Two similar companies request a quote. The first provides a documented quarterly cybersecurity dashboard. The second answers the questionnaire in a vague manner. The qualitative risk analysis differs significantly.

Box – What needs to be documented

• Security policy approved by management

• Patch management procedure

• Restoration test reports

• Results of phishing simulations

• Annual report to the board of directors

Guidelines and actionable checklist

• Appoint an executive sponsor for cyber risk

• Define a maximum of 5 KPIs

• Set clear objectives

• Require quarterly reporting

• Integrate the indicators into the insurer dialogue

Common mistakes and how to avoid them

1. Multiply the illegible indicators.

2. Confusing detailed technical metrics with strategic KPIs.

3. Failure to document progress.

4. Present a dashboard only after an incident.

5. Separate cyber governance and insurance strategy.

Questions to ask your insurer/broker

1. Which indicators most influence insurability?

2. Is MFA required on all remote access points?

3. Are restoration tests verified during renewal?

4. Is the phishing rate evaluated?

5. Is a formalized incident response plan required?

6. How are improvements taken into account during renewal?

7. Are there any non-negotiable minimum requirements?

8. Are the sub-limits linked to IT maturity?

9. Is a preliminary audit recommended?

10. How to link cybersecurity KPIs and D&O governance?

Conclusion

Cybersecurity KPIs for leaders make it possible to transform a technical risk into a measurable governance issue.

A few simple indicators, monitored over time, are enough to manage exposure, communicate with the insurer and strengthen insurability.

The next step is to formalize a quarterly dashboard aligned with your risk profile and insurance strategy.