Tool_03 // Response economics
Incident Response Cost + RTO Model.
Estimate annualized cyber-loss exposure using scenario weighting, control maturity, recovery posture, and insurance offsets. Built to justify incident readiness in CFO language.
Annualized loss expectancy
$71,826
Net single-event loss: $38,090 | Insurance recovery: 3,312
1.56 severe events/year × scenario-weighted net loss per event.
Target RTO
12 hrs
Revenue per hour
$662
Monthly exposure
$5,985
Target-state risk reduction
$35,267
Single-event cost composition
Business interruption (downtime)
$22,748
Legal + notification
$4,777
Forensics + recovery labor
$7,507
Brand + pipeline drag
$6,370
Model assumptions, not benchmarks
Every coefficient here is Principle Breach's own weighting, not a figure from an industry loss dataset. Hourly revenue assumes even accrual across all 8,760 hours in a year. Legal, forensics, and brand costs are modelled at 21%, 33%, and 28% of the downtime loss respectively. Insurance recovery is a flat percentage of gross loss, which real policies are not.
Use this to compare scenarios against each other and to size an argument. Do not put the absolute number in a board paper without an actuarial review behind it.