How to Translate Cyber Risk Into Financial Impact

For too many businesses, cybersecurity decisions feel like guesswork.

Most modern businesses, especially small and midsize businesses (SMBs), recognize that cyber attacks are increasing and are concerned about their exposure. Yet, security and IT leaders frequently have to explain why certain cybersecurity investments are necessary. 

Business owners and other decision-makers are, understandably, most often focused on the bottom line: What’s the ROI? This dynamic can make it hard to justify the purchase of new security tools and services without clear, data-driven insights.

The gap between “we need this” and “here’s why it’s worth it” can lead to stalled projects, slashed budgets, and leave even the most well-intentioned business exposed to a cyber incident.

To help remove the guesswork and translate cyber risks into clear financial impact, Coalition has launched a new Financial Risk Calculator. Available directly in Coalition Control®, the calculator can help your business make smarter security decisions to protect your bottom line from the financial impact of a cyber incident.

How the calculator works

The Financial Risk Calculator transforms complex cyber risk into meaningful financial terms. Instead of abstract probabilities and jargon, you get tangible dollar amounts for potential losses from specific threats to your company, like ransomware, business email compromise, and funds transfer fraud.

The calculator models risks across three probabilistic scenarios: low (1 in 10-year incident), moderate (1 in 100-year incident), and extreme (1 in 250-year incident). Based on your business’ existing profile in Coalition Control, the calculator delivers clear, actionable insights you can use immediately.

Instead of abstract probabilities and jargon, the Financial Risk Calculator gives you tangible dollar amounts for potential losses from specific threats to your company.

Quantify your unique risk exposure

See your potential financial losses from targeted cyber threats based on your business’ industry, size, and the amount of sensitive data you handle. This isn’t a generic risk score — it’s tailored to your specific business realities and powered by the same proprietary actuarial data Coalition uses to price cyber insurance and protect policyholders.

Compare your risk posture to peers

Determine whether you’re ahead of, behind, or right on par with similar organizations. This benchmarking helps you identify competitive gaps and set realistic security goals.

Make informed decisions about security and insurance

Use financial data to guide budget discussions and determine the right balance between prevention, mitigation, and risk transfer through insurance. The calculator insights can help you understand the risk you’re currently facing, how security investments can reduce it, and the portion of risk you transfer through insurance. 

Model potential losses with and without improvements

Understand the potential financial risk reduction from Coalition recommended security actions and solutions. See how your risk levels and projected dollar losses change when you take action so you can prioritize investments that deliver the greatest reduction in exposure.

How the calculator can shape cybersecurity decisions

Cyber incidents aren’t going away, and neither are the costs it takes to keep pace with attackers. Without a clear understanding of your risk in financial terms, your business may be left making decisions in the dark.

For business owners: The calculator helps deliver clarity on how implementing Coalition security recommendations can improve your overall security posture, including investing in a new security solution, upgrading your defenses, or adjusting your insurance coverage.

For security and IT leaders: The calculator reinforces influence. It provides the language leadership understands best: dollars and cents. It gives you the credibility and necessary evidence for others to support your recommendations and prove security investments aren’t just an empty cost.

Without a clear understanding of your risk in financial terms, your business may be left making decisions in the dark.

Start using the calculator today

Coalition’s Financial Risk Calculator gives you a data-backed view of your cyber exposure, the actions that will help reduce your risk, and the insurance coverage you need to transfer the rest. It’s a smarter way to protect your business today and prepare for the future.

Starting today, the calculator is available to Coalition policyholders inside Coalition Control, the unified cyber risk management platform that helps businesses detect, assess, and mitigate cyber threats before they strike.

See it in Action: Watch a quick demo on how to use the Financial Risk Calculator

Inside the platform, you can understand your business’ cyber risk as it evolves over time, get hands-on support from our team of experts, and discover new ways to strengthen your security posture, unlock cost savings, and improve your cyber insurability.

Log in to Control now and discover the financial clarity you need to influence cybersecurity decisions in your business.

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The Financial Risk Calculator provides estimated loss projections and likelihood are good-faith estimates based upon our expert advice and global claims data for a composite cybersecurity incident from similar companies in your industry; this is illustrative and for demonstration purposes only. Its accuracy and applicability to your circumstance is not guaranteed, and actual costs may vary depending on other factors, including the severity of the security threat, threat detection, and response. You may wish to consult with your insurance advisor regarding your particular circumstances.

The Financial Risk Calculator may be accessed from Coalition Control which is provided by Coalition Incident Response, Inc. dba Coalition Security, an affiliate of Coalition Inc. Coalition Security does not provide insurance products and products and services may not be available in all countries and jurisdictions. Non-insurance products and services may be provided by independent third parties, and may require separate payment. Disclosed Coalition policyholder benefits are subject to certain dependencies, including risk profile and underwriting approval. Exclusions and limitations apply. See Terms of Service for details. 

This blog post is designed to provide general information on the topic presented and is not intended to construe or render legal or other professional services of any kind. If legal or other professional advice is required, the services of a professional should be sought. The views and opinions expressed as part of this blog post do not necessarily state or reflect those of Coalition. Neither Coalition nor any of its employees make any warranty of any kind, express or implied, or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, product, or process disclosed. Any action you take upon the information contained herein is strictly at your own risk. Coalition and its affiliates will not be liable for any losses and damages in connection with your use or reliance upon the information. The blog post may include links to other third-party websites. These links are provided as a convenience only. Coalition does not endorse, have control over, nor assumes responsibility or liability for the content, privacy policy, or practices of any such third-party websites.

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