Why are Security Ratings Important? | UpGuard

## Executive Summary This document explains the concept and uses of security (cyber) ratings, detailing how ratings are calculated, the ten risk categories used by providers like UpGuard, and practical applications for third‑party risk management, internal performance measurement, and breach detection; it emphasizes UpGuard's data-driven methodology, transparency principles, and capabilities for detecting exposed data (e.g., leaked credentials in S3/GitHub).