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Cybersecurity Threat Management

How Proactive Cyber Defense Directly Protects Your Gross Revenue Margin

With the rise in cyber-attacks and their sophistication, cybersecurity threat management has become critical to protecting not only systems but also profitability. This algorithm quantifies the financial benefits of investing in cybersecurity threat management.

View Financial Impact Formula

Threat Management Algorithm

Step 1: Total Cost of Cyber Attack

Combine both direct (investigation, recovery, legal) and indirect (downtime, reputational damage) costs.

                        Total Cost = Direct Costs + Indirect Costs
                    

Step 2: Annual Probability of Attack

Estimate the yearly likelihood of a cyber-attack based on threat models or historical frequency.

                        Annual Probability = 1 - (1 - P)^(1 / Y)
                        
P = Estimated attack probability; Y = time in years

Step 3: Annualized Cost of Cyber Attack

Multiply total cost by annual probability.

                        Annualized Cost = Total Cost × Annual Probability
                    

Step 4: Annualized Cost of Threat Management

Spread the cost of your cybersecurity program over its expected lifespan.

                        Annualized Cyber Cost = Program Cost / Years of Use
                    

Step 5: Gross Margin Impact

Calculate the financial benefit by subtracting defense cost from projected losses.

                        Gross Margin Impact = Annualized Attack Cost - Annualized Cyber Cost
                    

ROI Calculator (Coming Soon)

We're building an interactive calculator where you can plug in real numbers (attack probability, threat management spend, etc.) and instantly visualize your risk-adjusted ROI.

Want early access? Contact us.

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