What is the cybersecurity risk equation?

In the realm of cybersecurity, the risk equation involves balancing the risk of an operation against the potential loss of a capability. Matthew Holland explains that this equation considers the costs associated with building and potentially losing capabilities aimed at a specific target. Thus, engaging in an operation that risks a significant capability needs to be weighed against the operational benefits. This risk management formula is influenced by factors such as the resources required to replace lost capabilities and the strategic implications of exposing specific methods or technologies used in cyber operations 1 .