How to Conduct a Cybersecurity Risk Assessment
A risk assessment helps you focus your security efforts where they matter most. You can't protect everything equally, so you need to know what's most valuable and most vulnerable. Here's how to do it without expensive consultants or complex methodologies.
Why You Need a Risk Assessment
A risk assessment is not just paperwork. It's essential because:
NIS2 requirement
Risk-based security approach is mandatory for compliance
Budget prioritization
Spend money where it actually reduces risk
Management communication
Translate technical risks into business language
Insurance requirements
Many cyber policies require documented risk assessments
Audit readiness
Demonstrates due diligence to auditors and regulators
Focus limited resources
SMEs can't do everything - know what matters most
The 5-Step Risk Assessment Process
Follow this practical process designed for SMEs without dedicated risk teams:
Step 1: Identify Your Assets
What do you need to protect? Start with your "crown jewels":
- Customer data (names, addresses, financial info)
- Financial systems (banking, payments, accounting)
- Intellectual property (designs, code, formulas)
- Production systems (if manufacturing)
- Employee data (HR records, payroll)
- Communication systems (email, file sharing)
- Website and online presence
Step 2: Identify Threats
What could go wrong? Common threats for Belgian SMEs:
- Ransomware attack (encrypts your data)
- Phishing (tricks employees into giving access)
- Data breach (customer data stolen)
- Business email compromise (fake invoices)
- Insider threat (employee malice or mistake)
- System failure (hardware/software crash)
- Supply chain attack (compromised vendor)
Step 3: Assess Likelihood
How likely is each threat? Use a simple 3-level scale:
- High: Expected to occur, or has happened before
- Medium: Could reasonably occur in next 1-2 years
- Low: Unlikely but possible
Step 4: Assess Impact
How bad would it be? Consider multiple dimensions:
- Financial: Direct costs, fines, lost revenue
- Operational: Downtime, productivity loss
- Reputational: Customer trust, media coverage
- Legal: GDPR fines, lawsuits, regulatory action
- Safety: For manufacturing/healthcare
Step 5: Calculate & Prioritize Risk
Combine likelihood and impact to prioritize:
- High likelihood + High impact = Critical (address immediately)
- High likelihood + Medium impact = High (address soon)
- Medium likelihood + High impact = High (address soon)
- Medium + Medium = Medium (plan to address)
- Low + Low = Low (accept or monitor)
Simple Risk Matrix
Use this 3x3 matrix to visualize and prioritize risks:
| Likelihood / Impact | Low | Medium | High |
|---|---|---|---|
| High | Medium | High | Critical |
| Medium | Low | Medium | High |
| Low | Low | Low | Medium |
Risk Treatment Options
For each identified risk, choose one of four responses:
Mitigate
Reduce the risk with security controls
Example: Install MFA to reduce account takeover risk
Transfer
Shift risk to another party
Example: Buy cyber insurance, use cloud provider with SLA
Accept
Acknowledge and live with the risk
Example: Accept risk of minor website defacement if cost of prevention exceeds impact
Avoid
Stop the activity that creates the risk
Example: Stop storing sensitive data you don't actually need
Documenting Your Assessment
A risk register should include:
Common Mistakes to Avoid
Making it too complex
Fix: Start with a simple 3x3 matrix. You can add sophistication later.
Only involving IT
Fix: Include business owners - they know the real impact of downtime
One-time exercise
Fix: Review quarterly and after significant changes
Focusing only on cyber threats
Fix: Include physical, human, and operational risks too
Analysis paralysis
Fix: Done is better than perfect. Start protecting high risks now.
Example: SME Risk Assessment
Here's what a typical SME risk register looks like:
| ID | Risk | Likelihood | Impact | Level | Action |
|---|---|---|---|---|---|
| R001 | Ransomware encrypts customer database | High | High | Critical | Implement daily offline backups, deploy EDR |
| R002 | Employee clicks phishing link | High | Medium | High | Security awareness training, email filtering |
| R003 | Server hardware failure | Medium | High | High | Migrate to cloud, maintenance contract |
| R004 | Website defacement | Low | Low | Low | Monitor, quick restore procedure |
Structured Risk Assessment Made Easy
Easy Cyber Protection includes guided risk assessment workflows that map directly to CyberFundamentals requirements. Identify, assess, and track risks without complex spreadsheets.
Frequently Asked Questions
How often should we do a risk assessment?
Full assessment annually, with quarterly reviews and updates after significant changes (new systems, new threats, incidents). The first assessment takes 2-3 days; reviews take 2-4 hours.
Do we need external help for risk assessment?
Most SMEs can do basic risk assessments internally using templates. External help is valuable for initial assessments in complex environments or regulated industries, but ongoing assessments can be internal.
How detailed should the risk register be?
Start with 10-20 key risks. You can add more over time. A 200-risk register that nobody maintains is worse than a 15-risk register that's actively managed.
Who should be involved in risk assessment?
At minimum: IT lead, finance/operations representative, and someone from management. For complete coverage, include representatives from each major business function.
How do we quantify risk in euros?
For SMEs, qualitative assessment (High/Medium/Low) is usually sufficient. If you need numbers: estimate worst-case cost (downtime × daily revenue + recovery costs + fines) and multiply by estimated probability.