Risk Assessment

A risk assessment is a systematic process of identifying, analyzing, and evaluating potential threats to an organization's information assets.

Risk assessment is a foundational security practice that involves systematically identifying potential threats and vulnerabilities, analyzing their likelihood and impact, and determining appropriate responses.

The risk assessment process: 1. Asset Identification: Catalog information assets, systems, and data 2. Threat Identification: Identify potential threats 3. Vulnerability Assessment: Find weaknesses that could be exploited 4. Likelihood Analysis: Estimate probability of each risk occurring 5. Impact Analysis: Estimate damage if the risk materializes 6. Risk Calculation: Combine likelihood × impact for risk score 7. Risk Treatment: Accept, mitigate, transfer, or avoid each risk 8. Documentation: Maintain a risk register with treatment plans

Risk assessments should be performed annually at minimum, and whenever significant changes occur.

Why It Matters

Risk assessment is the foundation that drives every other security decision. Without a formal risk assessment, organizations invest in the wrong controls, leave critical gaps unaddressed, and cannot demonstrate due diligence to auditors or regulators. Every compliance framework requires documented risk assessments, making it the single most important process in your compliance program.

Key Points

Required by SOC 2, ISO 27001, HIPAA, and most frameworks

Should be performed at least annually

Results documented in a risk register

Drives security control implementation priorities

Must involve business stakeholders, not just IT

Applicable Compliance Frameworks

SOC 2 ISO 27001 HIPAA PCI DSS GDPR NIST CSF

Related Terms

Vulnerability Assessment

A vulnerability assessment is an automated process of identifying security weaknesses in systems, networks, and applications without actively exploiting them.

Penetration Testing

Penetration testing is a simulated cyberattack on your systems performed by security professionals to identify exploitable vulnerabilities.

Risk Register

A risk register is a document that tracks identified risks, their likelihood and impact scores, current controls, and treatment plans.