A cybersecurity risk assessment identifies the various information assets that could be affected by a cyber-attack (such as hardware, systems, laptops, customer data, and intellectual property), and then identifies the various risks that could affect those assets.
Cyber risk is the likelihood of suffering negative disruptions to sensitive data, finances, or business operations online. Most commonly, cyber risks are associated with events that could result in a data breach. Cyber security incidents continue to increase and strengthen. Big and small businesses are vulnerable than ever to cybercrime and are hacked by organised criminal gangs for identity thefts, credentials theft and other financial gains.
Using this simple methodology, a high-level calculation of cyber risk in an IT infrastructure can be developed:
Cyber risk = Threat x Vulnerability x Information Value
A cyber security risk assessment is the process of identifying, analysing and evaluating risks affecting an organisation’s assets. It is a critical component of risk management and data protection efforts. It is also known as security risk analysis in cyber security.
It validates the security controls in place and checks whether these are appropriate for the risks faced by an organisation. An organisation cannot make informed security decisions without an assessment of its risks. Otherwise, this could lead to wasted time and resources against events that are unlikely to occur or have a low impact.
We can understand risk using the popular equation; risk equals probability times severity. Probability is the likelihood of an event, and severity is how serious this harm could be. In technology risk, we often see this formula:
Risk = likelihood x impact
With the increase in technology, technology risk is also increasing. Therefore, the challenge at hand is to lower the likelihood of security incidents as much as possible.
Cyber-attacks cost on average to small businesses
Small business rate their ability to mitigate cyber risks as highly
Small companies go out of business within six months of a cyber attack
cyber crimes will cost annually by 2025
There are various reasons why a business should perform a cyber risk assessment. These are:
Data breaches can have a huge financial and reputational impact on any organization. A good risk analysis improves security controls and risk mitigation strategies.
Fulfill compliance requirements be it be PCI DSS, GDPR, HIPAA or others.
Identifying potential threats and vulnerabilities, then working on mitigating them has the potential to prevent or reduce security incidents which saves your organization money and/or reputational damage in the long-term.
Theft of trade secrets, code, or other key information assets could mean you lose business to competitors.
Knowing organizational vulnerabilities gives you a clear idea of where your organization needs to improve.
Cyber risk assessments aren't one of the processes, you need to continually update them. A risk template is prepared for future threat assessments that can be used and updated as new changes affect assets’ risk posture.
The Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules define requirements for the appropriate use and safeguarding
ISO 27001 is the internationally recognized standard that outlines the requirements for constructing a risk-based framework to initiate, implement, maintain,
