Quantify GenAI Risk to Support Confident, Data-Driven Decisions

Kovrr’s AI Risk Quantification module helps organizations measure and manage GenAI risk with precision and scale. Its simulation-based modeling engine calculates the likelihood and potential losses of GenAI-related incidents using industry data, mapped controls, and frequency–severity distributions. The results translate complex exposure into clear financial and operational terms, enabling leaders to prioritize protections, report risk transparently, and strengthen long-term resilience.

From Inputs to Quantified AI Risk Decisions
Kovrr’s AI Risk Quantification module guides leaders from defining exposure to producing board-ready results, helping teams operationalize GenAI risk management with measurable precision.
step 1
Define Environment

Identify business parameters such as industry, revenue, and regulatory obligations to set the baseline for analysis.

step 2
Map AI Model Exposure

Capture model access, data types handled, reliance factors, and existing controls to shape accurate, customized AI risk profiles.

step 3
Run the Simulation

Leverage Kovrr’s quantification engine to calculate incident frequency and severity using tailored threat intelligence.

step 4
Review the Results

Examine metrics such as Annualized Loss Expectancy (ALE) and loss exceedance curves, broken down by access vector and event type.

step 5
Prioritize Improvements

Pinpoint the controls and mitigations that offer the highest reduction in modeled loss exposure and allocate resources accordingly.

The Market Stakes of GenAI Risk Are Rising

GenAI is being deployed faster than risk teams can assess its implications. Frameworks like NIST AI RMF and ISO 42001 define responsible practices, but they don’t quantify how often AI-related incidents might occur or what their real impact could be. Managing GenAI risk now requires data-driven modeling of exposure, giving organizations the ability to prioritize safeguards and demonstrate measurable improvement over time.

AI Risk Quantification
in Practice

Kovrr’s process starts by capturing how GenAI systems are deployed across your business. It incorporates real-world threat intelligence and mapped controls to simulate realistic loss scenarios. The models forecast frequency and severity, producing a dynamic view of AI-related exposure that evolves as environments change. These quantified results form a defensible foundation for prioritizing mitigations and improving governance decisions.

The Value of Quantifying GenAI Risk

Quantification turns GenAI exposure into a practical decision-making asset that supports governance, compliance, and strategic planning.

  • Communicate AI Risk to Leadership: Express exposure in financial and operational terms that executives understand, enabling transparency and informed decisions.

  • Prioritize and Prove ROI: Use modeled results to direct investments toward high-impact safeguards and demonstrate measurable improvement over time.

  • Strengthen GRC Programs: Incorporate quantified findings into governance and compliance processes to guide capital allocation, set risk appetite, and track materiality.

Quantifying GenAI risk brings measurable clarity to governance programs, enabling leaders to act on evidence rather than assumptions.

Need to Assess Your AI Compliance Readiness?

Kovrr’s AI Compliance Readiness module evaluates governance and control maturity for GenAI systems. Built on frameworks like NIST AI RMF and ISO 42001, it identifies readiness gaps and establishes the foundation for measurable, defensible AI risk management.

Features Built for Strategically Managing AI Risk
Kovrr’s AI Risk Quantification solution combines transparency and adaptability, giving teams everything needed to operationalize AI risk insights and support smarter decisions at scale.
Modifiable
Risk Drivers

Adjust frequency and severity assumptions to match your organization’s specific GenAI environment and refine analysis precision.

MITRE ATLAS-Based Recommendations

Leverage MITRE ATLAS techniques and mitigation guidance to map modeled AI risks to real-world threat behaviors.

Monte Carlo
Simulations

Run probability-based simulations that calculate incident frequency and severity distributions to forecast potential losses.

Control Impact
Modeling

Test how specific safeguards influence modeled loss outcomes and identify which controls deliver the greatest reduction in exposure.

Scenario
Comparison Tools

Compare modeled outcomes side-by-side to evaluate the financial benefit of alternative mitigation strategies.

Industry and Entity Data Inputs

Leverage industry benchmarks alongside internal operational data for context-specific, evidence-backed results.

Trend Analysis and Forecasting

Track GenAI risk exposure changes over time and visualize how new AI deployments or safeguards affect total risk.

Top Risk
Identification

Discover the modeled GenAI risks that drive the highest potential losses, focusing mitigation efforts where they matter most.

Report-Ready
Outputs

Generate audit-friendly reports that communicate quantified exposure to boards, regulators, and insurers.

Kovrr’s AI Risk Quantification FAQ

Schedule AI Risk Quantification Demo

What is AI Risk Quantification?

What types of AI systems can be analyzed with AI risk quantification?

Can Kovrr’s AI Risk Quantification measure both financial and operational impacts?

How can GenAI risk quantification results be used in board and executive reporting?