Risk Assessment
Definition
A risk assessment is the process of identifying, analyzing, and evaluating risks. In cybersecurity, this involves identifying valuable assets, the threats to those assets, and the vulnerabilities that could be exploited by those threats. The goal is to determine the likelihood and impact of a potential security incident.
Why It Matters
No organization has unlimited resources. A risk assessment helps to prioritize security efforts by focusing on the most significant risks to the business. It provides a rational basis for making security decisions.
Contextual Example
A company performs a risk assessment and determines that a data breach of its customer database is a high-impact, high-likelihood risk. As a result, they decide to invest heavily in database security controls, such as encryption and access monitoring.
Common Misunderstandings
- Risk = Likelihood x Impact.
- A risk assessment is a foundational activity for any cybersecurity program.