How can you conduct a security risk assessment?

1 Define the scope

The first step is to define the scope of the security risk assessment, which includes the boundaries, objectives, and criteria of the analysis. You need to determine what assets, processes, systems, and data are in scope, and what are the relevant threats, regulations, standards, and policies that apply to them. You also need to define the risk appetite and tolerance of your organization, which are the levels of acceptable and unacceptable risk exposure.

2 Identify the assets

The next step is to identify and inventory the assets that are in scope, and classify them according to their value, sensitivity, and criticality. You need to document the characteristics, functions, dependencies, and owners of each asset, as well as their current security controls and status. You can use tools such as asset management software, network scanners, data discovery tools, and interviews to collect this information.

3 Analyze the risks

The third step is to analyze the risks that could affect the assets, based on their likelihood and impact. You need to identify the sources, scenarios, and consequences of potential threats, such as natural disasters, cyberattacks, human errors, or sabotage. You also need to assess the vulnerabilities and weaknesses that could be exploited by the threats, such as outdated software, misconfigured settings, or lack of encryption. You can use tools such as threat intelligence platforms, vulnerability scanners, penetration testing, and risk matrices to perform this analysis.

4 Evaluate the risks

The fourth step is to evaluate the risks and compare them with the criteria and thresholds defined in the first step. You need to prioritize the risks based on their severity, urgency, and exposure, and assign them a rating or score. You also need to determine the residual risk, which is the risk that remains after applying the existing security controls. You can use tools such as risk dashboards, heat maps, and reports to visualize and communicate the results of this evaluation.

5 Treat the risks

The fifth step is to treat the risks according to their priority and your organization's risk strategy. Select and implement the appropriate risk treatment options, such as avoiding the risk by eliminating or avoiding its source, reducing the risk with security controls, transferring the risk to a third party, or accepting the risk if it is within an acceptable range. To manage and monitor these activities, consider using tools such as project management software, change management processes, and security audits.

6 Review and update

The sixth and final step is to review and update the security risk assessment periodically, or whenever there are significant changes in the scope, assets, threats, vulnerabilities, or controls. You need to measure and evaluate the effectiveness and performance of the security controls, and identify any new or emerging risks that need to be addressed. You also need to document and report the findings, recommendations, and lessons learned from the security risk assessment, and communicate them to the relevant stakeholders.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?