Coalition Control’s Financial Risk Calculator is designed to help you understand your cyber risk in clear, quantifiable financial terms, so you can make smarter security decisions to protect your business.
Key Features of the Financial Risk Calculator
This tool is designed to help you:
- Quantify Your Financial Risk: Understand the potential financial cost of a cyber incident, including legal fees, regulatory fines, ransom payments, business interruption, and systems recovery. See how improving your security posture can reduce those costs. Also compare your current insurance limit against modeled financial losses for different threat scenarios, like a severe ransomware attack or a business email compromise.
- See the ROI of Security Investments: The calculator helps you visualize how recommended security tools, such as Security Awareness Training (SAT) or Managed Detection & Response (MDR), can potentially lower your financial risk. You can also see potential savings and insurance benefits that come with implementing these solutions.
- Benchmark Against Your Peers: The tool provides benchmarks, showing you how your potential loss and incident likelihood compare to other organizations in your industry.
How the Calculator Works
The Financial Risk Calculator combines specific details about your business with Coalition’s extensive claims data to provide a personalized view of your potential financial exposure. This includes certain factors that directly influence your cyber risk profile, such as:
- Inherent Risk Factors: These are foundational elements of your business that impact your risk. They include your industry, annual revenue, number of employees, and the amount of personal data records you handle.
- Cyber Health Rating (CHR): This score, ranging from Severe to Excellent, is a dynamic representation of your security posture. You can use the calculator to see how improving your score—for example, by completing your recommended action plan—can reduce your potential financial loss.
- Security Investments: The calculator also models the impact of specific security products like Security Awareness Training (SAT) and Managed Detection & Response (MDR). You can see how these investments not only strengthen your defenses but can also lower your financial loss projections.
The calculator takes these inputs to display your cyber risk in a side-by-side view showing your current and projected cyber health posture, with estimated loss scenarios and likelihood of an incident compared to peers.
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Estimated Loss Scenarios: For different types of incidents (Composite, Ransomware, or Funds Transfer Fraud / Business Email Compromise), the calculator presents your projected loss estimates for three scenarios:
- Extreme: A high-impact event with a low probability (e.g., 1 in 250 years).
- Moderate: A significant event with a moderate probability (e.g., 1 in 100 years).
- Low: A common, less severe event (e.g., 1 in 10 years).
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Incident Likelihood vs. Peers: This feature shows your estimated likelihood of an incident compared to similar business in your industry, to help you understand how your current security posture aligns with your peers.
Using the Calculator
To see how to reduce your financial risk, use the calculator to make modifications to your cyber health posture and see how the projected losses change. You can see how improving your CHR—for example, by completing your recommended action plan—can reduce your potential financial loss. The Inherent Risks (industry, number of employees, revenue, number of PII records) can also be tweaked to see their potential impact on loss exposures. The model is pre-populated with your current CHR and Inherent Risks.
You can also toggle on Security Awareness Training or MDR to see how purchasing security products can reduce your organization’s risk.
Where to Find the Calculator
Only Coalition policyholders can access the Financial Risk Calculator and widget in Coalition Control. You can access the new tools in two ways:
- The Financial Widget is now live on your Control Home Page.
- The full Financial Risk Calculator can be accessed by clicking "Explore Financial Risk" on the widget or directly from your Insurance Policy Page.
Getting Help
If you need assistance with the Financial Risk Calculator:
- Contact Coalition Support through your Control dashboard
- Consult with your broker for additional insight into your overall risk and insurance limits
- Submit a request here