What Is A Cyber Risk Assessment And Does Your Business Need One?

Did you know that small businesses are the target of 43% of cyber attacks, and shockingly, 60% of them are forced to shut their doors within six months of an attack. 

This is a sobering reality check that highlights the critical importance of businesses taking proactive steps to defend against cyber risks – now more than ever. 

While this sounds alarming, a clear solution exists: cyber risk assessment. Let’s explore everything you need to know about this systematic approach and how ADITS can help keep your business secure.

What is a cyber risk assessment?

A cyber risk assessment is a systematic process that helps uncover potential threats and vulnerabilities lurking within your information systems. Think of it as a wellness check for your business’s digital environment, pinpointing weaknesses in your defences before a cyber attack has the opportunity to break through.

For example, a cyber risk assessment might reveal that your organisation’s outdated firewall isn’t equipped to block newer forms of malware, or that employees are unknowingly using weak passwords, making it easier for hackers to breach your network.

By assessing risks head-on, businesses can make smarter decisions about where to strengthen their defences, keeping their digital assets secure and resilient in the face of ever-evolving threats. 

The Cyber security and Infrastructure Security Agency (CISA) highlights that these assessments play a major role in helping businesses truly understand how cyber threats can impact their operations at every level. This includes understanding how threats could disrupt your core mission, affect critical functions, and even tarnish your public image. 

With this clear picture, businesses can shape their cyber security strategies to support their bigger goals, ensuring digital security becomes a strong ally rather than an obstacle.

What are the main components of a cyber risk assessment?

A comprehensive cyber risk assessment involves six key steps, each aimed at uncovering and tackling any potential threats to your business’s digital landscape. Let’s take a detailed look at these important components:

1. Asset identification

The first step in a cyber risk assessment involves cataloguing everything within your digital environment, from hardware and software to data and network components. This helps pinpoint your most valuable assets and focus your security efforts where they’re needed most. To make this clearer, here are some examples of asset identification:

• Identifying customer databases containing sensitive personal information: This involves determining where the data is stored, whether it’s on internal servers, cloud storage, or third-party platforms, and mapping out who has access to it.

• Listing essential hardware such as servers and employee devices: This includes taking stock of all the devices that connect to your network, from desktops and laptops to smartphones and even smart devices. It’s important to know their configurations and how they’re being used to spot any potential security gaps.

• Documenting software tools like CRM systems and cloud storage platforms: This is about keeping track of all the software you rely on, whether it’s a CRM, file-sharing system or accounting tool.

2. Threat analysis

This next step is all about identifying the potential threats that could take advantage of weaknesses in your systems. These threats can come from many places, both inside and outside your business. 

Outside risks include hackers, ransomware, or phishing attacks, while inside threats could stem from accidental errors or employees not being aware of security best practices. Here are a few examples to give you a clearer picture of these threats in action: 

• A phishing email could trick employees into sharing login credentials: A phishing attack typically involves an email designed to look like it’s from a trusted source, like a colleague or a well-established company. The email might ask the recipient to click on a link or download an attachment, unknowingly giving attackers access to sensitive information.

• Malware could enter your system through unsecured third-party apps: Many businesses rely on tools like project management software or communication platforms. However, If these aren’t properly vetted, or have security flaws, they can open the door to malware. 

• Insider threats, like an employee misusing their access, can lead to data breaches:  Often, the biggest risks come from within the company. This can happen if an employee intentionally misuses their access, like a disgruntled worker leaking confidential information, or accidentally, such as by falling for a phishing scam.
  
  The threat analysis step helps strengthen access controls and ensures that employees are fully aware of their responsibilities when it comes to handling sensitive information.

3. Vulnerability assessment

After identifying potential threats, the third step is to take a closer look at where your systems might be vulnerable. This can mean spotting things like outdated software, weak passwords, or security flaws in applications that haven’t been patched yet. 

These gaps are the perfect entry points for cybercriminals, so it’s important to go through your systems carefully and identify any areas where defences may be slipping. Here are three common vulnerabilities:

• Unsecured network connections: If your Wi-Fi network or internal systems are not properly secured, they can be easily accessed by unauthorised users. For instance, a guest Wi-Fi network without encryption or weak security settings could allow attackers to gain access to your company’s internal network and sensitive data.

• Unpatched software vulnerabilities: Applications and operating systems regularly release security updates to patch vulnerabilities, but if you ignore or delay these updates, your systems can become exposed.

For example, an outdated version of a popular application might have a vulnerability that attackers can exploit to gain access. Spotting a vulnerability like this gives you the opportunity to patch your software and systems, effectively closing the door to cyber criminals before they can take advantage.

• Exposed ports and services: Sometimes, businesses leave certain network ports or services open without realising they’re accessible from the outside. For instance, an unused port might still be open and connected to a service that could be exploited.

4. Risk evaluation

As you’ve likely noticed from the vulnerabilities we’ve discussed so far, not all of them carry the same level of threat to your business. This is where step four – risk evaluation – comes into play. This step is about understanding which threats are most likely to happen, and what kind of impact they would have on your business.

Some risks may feel like a real immediate threat, while others might be lower on the scale, but still require attention. By evaluating both the likelihood and severity of different scenarios, you can prioritise your resources and focus on what really matters. Let’s explore some examples:

• A ransomware attack targeting your financial records: This could be highly likely, especially if your business handles a lot of sensitive data, or if your security systems are outdated. The impact of such an attack could be devastating; therefore, this type of threat would call for immediate action, such as enhancing your backup strategy, implementing stronger firewalls, and ensuring employees are trained to spot phishing attempts.

• A minor data leak involving non-sensitive information: While not as catastrophic, a small data leak – say, the accidental sharing of non-sensitive internal memos – can still have significant consequences. For example, clients might begin to question your ability to safeguard any kind of information, even if it’s not sensitive, which could harm your reputation. 

5. Control implementation

Once you’ve prioritised the risks, it’s time to put the right measures in place to protect your systems. The Control Implementation stage is where you take action to minimise or eliminate the risks you’ve identified.

These controls come in two main forms: technical solutions and procedural measures. Technical solutions often include things like firewalls, encryption or multi-factor authentication. Whereas procedural measures focus on how people within your organisation should act to stay secure. Here are several examples of how controls are implemented:

• You might set up endpoint security software on all your devices to stop malware in its tracks and prevent unauthorised access before any damage is done. That way, whether it’s a desktop, laptop, or mobile phone, everything stays protected.

• You might implement automated patch management, where a system automatically installs security patches and updates across all devices and software, keeping systems up to date and minimising vulnerabilities.

• Another step might be limiting access to sensitive files based on what each employee does. For example, only the finance team would have access to payroll data, while the marketing team would only see client-related info.

6. Monitor and review

Cyber threats are always evolving, so your cyber security strategy can’t just be set once and forgotten. It’s an ongoing process that requires regular check-ins to make sure your defences are still holding strong. For example:

• You might regularly check access logs to catch any suspicious activity that could point to a potential breach. This is a great way to keep track of who’s accessing what and make sure no one’s unexpectedly snooping around your sensitive data.

• You could set up quarterly vulnerability scans to catch any new risks or weaknesses that might have been missed before. With tech always evolving, something that was secure before might not be anymore, so staying proactive is key.

Why cyber risk assessments matter for your business

As you can see, regular cyber risk assessments offer significant benefits that can’t be overlooked. Here’s why making them a priority is a smart move for your business:

• Stay ahead with proactive risk management: By spotting vulnerabilities early, you can take proactive steps to shore up your defences before attackers have the opportunity to exploit them. It’s all about preventing potential issues before they even have a chance to become major problems.

• Stay on top of compliance: Many industries have regulations in place that require businesses to conduct regular risk assessments. By staying on top of these assessments, you ensure you’re not just protecting your data but also meeting legal and regulatory requirements.

• Minimise downtime: Cyber incidents can bring your operations to a halt, and that downtime can end up costing you. For example, imagine your email system going down after a cyberattack. Not only does it slow communication, but it can also delay customer orders and even lead to lost sales. Regular assessments help you catch issues like this before they get out of hand, saving you time and money in the long run.

• Strengthens customer trust: Customers want to know their data is safe. By regularly conducting cyber risk assessments, you show you’re serious about protecting their sensitive information, which helps strengthen your relationships and earn their trust.

• Gain strategic insights: Regular assessments uncover patterns and pinpoint vulnerabilities in your systems, giving you a clearer picture of where your cyber security efforts are working and where they need improvement. This knowledge helps you prioritise future investments in cyber security, ensuring you spend your resources wisely on measures that offer the most protection.

Real-world lessons for your business

Taking a close look at past incidents highlights just how important regular cyber risk assessments are in preventing future breaches. Here’s a real-world example that really drives this point home:

Target data breach: A wake-up call for cyber risk assessment

In late 2013, a massive cyber attack hit retail giant Target, compromising over 40 million credit card numbers and 70 million customer records. The attack started when hackers gained access to Target’s network through a third-party vendor. 

The attackers exploited security weaknesses in the vendor’s systems to steal login credentials, which they then used to breach Target’s network. Once inside, the hackers accessed a range of sensitive information, including customer credit card details and personal records.

This incident is a prime example of why cyber risk assessments are so important. A single vulnerable link in a vendor’s security setup became a doorway for cybercriminals, leading to $162 million in financial losses for Target, along with an outburst of lawsuits from customers, banks and shareholders.

The lesson here? Target’s breach is a stark reminder of how a single weak link can endanger an entire organisation. A thorough risk assessment would have helped Target identify this vulnerability before it was exploited, allowing them to strengthen security protocols with their vendors and ultimately prevent the breach. 

For smaller businesses, the stakes are just as high, and with fewer resources to recover, proactive risk assessments are even more essential.

How ADITS can strengthen your cyber security with comprehensive risk assessments

As you’re now well aware, cyber risk assessments are essential for spotting vulnerabilities and threats before they turn into expensive headaches. 

At ADITS, we specialise in providing customised risk assessments designed to shield your business from cyber attacks and keep your operations performing on track. Here’s how we can support your business:

• Tailored cyber risk assessments: We work closely with your team to understand your unique business needs and industry requirements, customising a comprehensive cyber risk assessment plan. This personalised approach ensures that all critical assets, from sensitive data to systems, are thoroughly evaluated for potential threats.

• In-depth vulnerability scanning: By utilising the latest vulnerability scanning tools, ADITS identifies weaknesses in your network, software, and hardware before attackers can exploit them. This helps you stay one step ahead and reinforces your security posture.

• Proactive threat detection: ADITS employs advanced threat detection technologies to continuously monitor your systems for signs of cyber threats. With early detection, your team can respond quickly to prevent breaches or limit damage.

• Vendor risk management: As highlighted in the case study above, third-party vendors often serve as vulnerable gateways for cybercriminals to exploit. At ADITS, we include vendor risk management in our assessments to help ensure that your vendor relationships don’t unintentionally expose your business to cyber threats.

• Regular risk reviews and updates: As cyber threats evolve, so should your risk assessments. ADITS provides ongoing reviews and updates to your assessments, making sure that your cyber security strategy evolves with emerging risks.

Take control of your cyber security with ADITS

Cyber risk assessments are much more than just a precautionary measure – they’re a vital step in protecting your business against costly breaches and disruptions. 

When you partner with ADITS, you’re gaining more than a comprehensive report. You’re gaining the expertise of a results-driven team that has supported over 800 businesses and 14,000 users. With clear insights, actionable recommendations, and tailored strategies, ADITS is dedicated to strengthening your security and protecting what matters most.

Don’t leave your security to chance. Reach out to ADITS today and take the first step towards a stronger, more resilient future for your business.

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