Interscale Content Hub – The IT risk step is a way of identifying, evaluating and dealing with potential threats and vulnerabilities that could affect an organisation’s information systems and data. Learn more about IT risk assessment steps by steps guide through this article.
It’s a vital step you can take to protect your business, especially in today’s digital world, where cyber threats are becoming increasingly sophisticated.
Let’s break down all the process into 10 simple steps now.
The IT Risk Assessment Process: Step-by-Step
Step 1: Identify Assets and Systems
The first thing you need to do when you’re assessing the risks to your IT is to make a list of all your IT assets.
This covers everything from hardware (like servers, laptops and mobile devices) and software (operating systems and applications) to data (like customer information and financial records) and networks.
As the ARCS said in the “Risk Assessment Process Manual,” it’s important to be thorough when you’re creating your inventory.
Things like software versions and hardware configurations should be noted.
The more detailed your inventory, the better you’ll understand where you might be at risk.
So, this step is about putting together a list of all your servers, workstations, applications and databases.
You need to make sure you document each one, so you know what it does and why it’s important to the business.
Step 2: Determine Potential Threats
Next, we need to figure out what could harm your IT assets. These threats can be all sorts of things, from natural disasters (like bushfires and floods) to cyberattacks (like ransomware and phishing).
The Australian Government has highlighted the growing threat of cybercrime in its 2023-2030 Australian Cyber Security Strategy.
It says that the average cost of a cyber attack for small businesses in Australia is now a staggering $46,000.
So it’s worth thinking about both internal and external threats, as well as accidental and intentional ones.
For example, external threats could be cybercriminals trying to get into systems, while internal threats might be employee mistakes or attacks by people inside the company.
The Australian Cyber Security Centre (ACSC) is a great place to find out more about relevant threats.
Step 3: Assess Vulnerabilities
Once you’ve spotted potential threats, it’s time to look at the weak spots in your systems that could be exploited.
These weaknesses could be outdated software, inadequate security protocols, or even human err
The National Institute of Standards (NIST) in “Guide for Conducting Risk Assessments,” defines a vulnerability as “a weakness in an information system, system security procedures, internal controls, or implementation that could be exploited by a threat source.”
That’s why NIST says it’s important to do regular scans and penetration tests to identify and understand these weaknesses.
This step is to look closely at the current security situation with your IT systems.
Step 4: Analyse Existing Controls
Now, take a look at the security measures you already have in place to help reduce risks.
This means looking at things like policies, firewall settings, access controls and other ways of keeping things secure.
The Australian Government strategy suggests how organisations should check how well these controls are working in reducing the risks identified.
The idea is to spot any gaps in your current controls. Why is that?
The IBM Cost of a Data Breach Report 2024 shows us something pretty interesting. It reveals that organisations with complex security systems often face higher breach costs.
This goes to show us just how important it is to have streamlined and effective controls in place.
Step 5: Determine Likelihood and Impact
For each threat you’ve identified, think about how likely it is to happen and what it could mean for your business.
This could mean financial loss, operational disruption, reputational damage or legal consequences.
The IBM Cost of a Data Breach Report 2024 also has some great insights into the potential financial impact of a data breach. The global average cost is USD 4.88 million.
That’s why it’s important to assess the probability and potential damage of each threat.
For example, breaches involving stolen credentials took an average of 292 days to identify and contain, which shows how important it is to have quick detection and response mechanisms.
You can also take a look at the ACSC process manual, which gives tips on how to assess risks and help you make these estimates.
Step 6: Calculate Risk Levels
Add up the likelihood and impact of each threat to see how risky they are overall.
This will help you decide what to focus on first when you’re trying to reduce the risks to your business.
The ACSC says you should use a risk matrix to show and group risks into levels like low, medium, or high. This step makes sure that the biggest risks are dealt with first.
Just so you’re up to speed, have a quick flick through “Risk Assessment IT Security: Process, Best Practices, Tools, & Techniques.”
Step 7: Develop Risk Mitigation Strategies
Based on the risk levels you’ve worked out, come up with ways to reduce or get rid of those risks.
This could mean putting in place extra security measures, updating software, providing employee training, or even buying cyber insurance.
The NIST guide says good mitigation strategies make it less likely a threat will happen or if it does, it won’t have as big an impact, so the overall risk level goes down.
Meanwhile, the Australian Government strategy is focused on building a “cyber resilient region,” which includes developing effective risk mitigation strategies.
Step 8: Document Findings and Recommendations
Write up a full report that sums up your assessment, shows the level of risk involved and suggests ways to deal with it.
This document is your roadmap for managing risks and is essential for showing you’re compliant with any regulations.
Having the right paperwork in place makes sure that everyone involved is up to speed on the risks and what’s being done about them.
Step 9: Implement Risk Mitigation Measures
Once we’ve got our mitigation strategies in place, we’ll move on to implementation.
This means making the right changes to IT systems and processes, which could include technical solutions, policy updates, and training programmes.
You might also need to invest in new tech, change processes, or even tweak your company culture.
The Australian Cyber Security Strategy shows how important it is to get things done on time and properly to make sure your organisation is safe.
And as ARCS points out, this step might need financial support. The risk assessment itself can be a great way to get administrators and funders on board.
Step 10: Monitor and Review
IT risk assessment isn’t something you do just once. It’s something you do all the time.
That’s why it’s a good idea to monitor developments so you can adapt to new threats and ensure that your security framework is up to date.
Keep an eye on your systems for new threats and vulnerabilities, and review and update your risk assessment at least once a year, or more often if your business environment changes a lot.
The NIST says it’s crucial to keep risk assessments up to date so they stay relevant and effective in the face of constantly changing threats.
The key to effective IT risk management is to be proactive.
If you do regular, thorough risk assessments, you can stay one step ahead of potential threats and protect your business from the potentially devastating consequences of a cyber attack or other IT incident.
For your current awareness, kindly read “6 Types of IT Risks & Emerging Threat in 2024.”
Best Practices for IT Risk Assessment
The threats that are out there online are always changing, and the weaknesses in your systems can change slowly over time.
So, the ARCS suggests you do a risk assessment at least once a year, but you might need to do it more often if your business environment changes a lot or if new threats come up.
The NIST agrees, saying we should keep risk assessments up to date to reflect any changes we find through monitoring.
The thing is, doing a risk assessment isn’t just about ticking boxes and following a checklist.
So, we need to make sure we’ve got everyone on board, including stakeholders from across the business, such as facilities, collections staff, security, safety specialists, and vendors.
This makes sure everyone’s got a say and the results are relevant to the whole business.
And it’s also important to take a risk-based approach. This means focusing your resources on the biggest risks to your business, putting the most likely and impactful threats at the top of the list.
The Australian Government is on the same page when it comes to protecting critical infrastructure.
They say that “government investments in cyber security must be focused on the systems that are most critical to our national interests, economic prosperity, and social cohesion.”
The IBM report shows that a risk-based approach is worth it. It says that the average cost of a data breach has risen to a whopping USD 4.88 million.
So, by focusing on the biggest risks, you can make the most of your limited resources and reduce the potential financial and reputational damage from a breach.
Finally, don’t be afraid to bring in outside help if you need it.
If your company doesn’t have the right IT risk assessment expertise in-house, it might be worth getting an external consultant to help out with the process.
This can help make sure your assessment is thorough, accurate, and in line with industry best practices.
So, How Can Get an IT Risk Assessment Support System?
The truth is that even the most experienced teams can find it tough to keep up.
So, at Interscale, our team of IT experts will work with you to help you get to grips with the ins and outs of IT risk assessment.
Our main goal is to provide solutions that are tailored to your business objectives and risk tolerance.
We’ll help you spot the risks, implement the right security measures, and give your employees the know-how and skills to combat cyber threats.
We’ll also make sure your team is armed and ready to fight back. Our training programmes give your employees the skills they need to be your first line of defence against cyber threats.
As you can see from our track record, we’re a reliable support system for companies like Davey Water Products, helping them to improve their cybersecurity.
And we’re ready to do the same for you.
We’d appreciate it if you could have a look at our Interscale IT Risk Assessment Services page to find out more about how we can help.
Or, if you think a coffee and croissants would be a good idea, let’s arrange a one-to-one meeting.
We’re ready to look at your specific risk assessment concerns and show you how Interscale can be your trusted partner.
In Closing
If you do regular, thorough IT risk assessments, you can spot weaknesses, figure out what could go wrong, and put plans in place to deal with it.
The issue is there aren’t many companies with the resources they need to run their operations.
So, even the most experienced teams can find it tough to keep up.
So, teaming up with Interscale will help you get started with simple IT risk assessment steps, which are essential for keeping your business resilient.
