Cybersecurity Risk Assessments

Smart cyber defense starts with knowing your risk.

Cyberattacks lurk around every corner, and it seems a challenging task to find an organization that has made it through 2025 unscathed. These relentless, ever-present cyberattacks come at a high price. In 2024, the average cost of a data breach in the U.S. hit an all-time high of $10.22 million – a 9% increase over the previous year. With staggering cost and constantly expanding threat landscapes, many organizations are left asking the same question: Where do we begin?

The answer starts with visibility. Before an organization can defend itself, it needs to understand where it stands, and that’s exactly what a cybersecurity risk assessment provides.

Types of cybersecurity assessments to address cyber risk

Cybersecurity assessments can take many forms, but at their core, they share the same fundamental goal: to evaluate and improve an organization’s cyber risk management posture in alignment with business strategy. These assessments are health checks for both technical infrastructure and operational practices. They help reveal vulnerabilities, gaps in coverage, and risky behaviors before a cyberattack finds them first.

A cybersecurity assessment is one key component within the broader discipline of cyber risk that focuses specifically on the security of digital assets, networks, and systems that support business operations. Three of the most commonly used assessment types, along with guidance on when they are typically conducted, include:

• Vulnerability scans. A vulnerability scan is a technical assessment. Vulnerability scans use automated tools to check systems and networks for known vulnerabilities, misconfigurations, and outdated software. Many regulatory frameworks and rules, such as the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF), Payment Card Industry Data Security Standard (PCI DSS), and the Health Insurance Portability and Accountability Act (HIPAA), require organizations to maintain a vulnerability management program, which includes regular vulnerability scanning. Even outside compliance contexts, vulnerability scans should be a regular and consistent part of an organization’s defense strategy and conducted on a regular basis, such as weekly or monthly, to catch emerging threats and maintain baseline security hygiene.
• Penetration tests. A penetration test is a controlled, simulation-style assessment performed by penetration testers, sometimes referred to as ethical hackers, to assess an organization’s defenses. These professionals employ real-world tactics – the same used by malicious actors – to evaluate how well existing security controls and personnel respond under realistic conditions. Penetration tests often include vulnerability scans, but they go further. Penetration testers actively exploit identified vulnerabilities to assess and, when possible, penetrate the layered security controls in place. Penetration tests might be mandated by regulation or as part of an organization’s security plan. These assessments are often conducted on an annual basis, but they should also be considered after significant infrastructure changes, software rollouts, or security incidents.
• Cybersecurity risk assessments. A cybersecurity risk assessment helps an organization identify and evaluate potential risks. These assessments are highly structured. They review technology, processes, plans, and people to identify risks and determine the likelihood and impact of those risks occurring. Cybersecurity risk assessments are often what people envision when another common term, “cybersecurity assessment,” is used. They provide a big picture understanding of an organization’s cyber risk landscape and help prioritize security investments. Cybersecurity risk assessments are commonly prompted by regulatory requirements, organizational growth, or strategic planning, and they should be conducted at least annually – or more frequently if there are major business or technology changes.

A cybersecurity risk assessment in action

Cybersecurity risk assessments are enterprise-level risk assessments that evaluate organizational processes, technologies, and people, distinct from tactical activities such as vulnerability scans or penetration tests. Conducting a cybersecurity risk assessment is not a one-size-fits-all exercise. To deliver meaningful results, organizations must take a structured approach, first by defining the scope and objectives, then by executing the assessment with precision, and finally by translating findings into actionable outcomes. Thoughtful planning and approaches, clear communication to stakeholders, efficient execution, and effective reporting work together to help assessments provide immediate insights and long-term strategic value.

Scope and approach

An effective cybersecurity risk assessment looks different for every organization, as each has its own size, regulatory requirements, and risk profile. One of the most crucial early activities is properly scoping the assessment to match these unique factors, including clearly defining the business units, processes, and systems to be evaluated, as well as identifying the internal and external resources needed for a thorough assessment. To facilitate this process, it is important to define the base goals and reasons for the assessment. Is the goal to identify operational weaknesses? Is the assessment meant to inform a shifting strategic objective, or is it related to a planned merger or acquisition? Defining and understanding the goal of the assessment is an important first step that influences what the overall assessment design looks like.

Once a repeatable assessment process is established, future assessments benefit from prior efforts. Cybersecurity risk assessments are inherently iterative. Each one builds on the last, which allows for more targeted scoping and refinement over time.

During this stage, using industry-recognized risk and control frameworks can play a pivotal role. Standards such as the NIST CSF, the International Organization for Standardization 27001 standard, the Center for Internet Security Critical Security Controls, PCI DSS, and the Cyber Risk Institute’s Cyber Profile for the financial sector offer structure and clarity and can help organizations achieve consistency and alignment with industry best practices. Whether framework adoption is regulatory or business-driven, understanding the appropriate framework and its control set is essential before the assessment begins.

Communication to stakeholders

A cybersecurity risk assessment is a critical process that helps organizations identify, evaluate, and prioritize potential cyberthreats to their business. However, it can also be a time-consuming activity for business and IT stakeholders. One of the biggest risks to the cybersecurity risk assessment itself is when stakeholders do not understand the importance and value of the assessment and therefore do not take the time to adequately think through the risks presented through the assessment. The assessment effectively becomes a check-the-box exercise.

Effectively communicating the purpose and organizational value of the cybersecurity risk assessment ensures that all stakeholders – from executives to technical teams – understand that its goal is not merely to check compliance boxes but to proactively strengthen the organization’s resilience against cyberthreats, promote brand reputation, and enhance customer trust. When everyone grasps the true purpose of the assessment, alignment across the organization creates a shared responsibility for cyber risk management.

Equally important is setting clear expectations for what the assessment will deliver. Communicating the scope, timeline, and anticipated outcomes helps prevent misunderstandings and supports meaningful participation from all relevant parties. By establishing that the process will provide actionable insights rather than just technical reports, leaders can encourage engagement and appropriately allocate resources to address identified risks. Transparent communication about the assessment’s objectives and deliverables ultimately builds trust, informs decision-making, and enhances the overall effectiveness of the organization’s cybersecurity posture.

Execution

With scope, approach, framework, and stakeholder communication defined, the next step is executing the cybersecurity risk assessment. Execution typically involves collecting and analyzing data through various methods, such as interviews, technical configuration reviews, security scans, and documentation analysis. All information should be managed securely, with particular care given to labeling and protecting sensitive data.

Effective execution depends on collaboration. Assessment teams must coordinate with technical staff, business stakeholders, and leadership to collect data timely and accurately. Buy-in from leadership across various business areas is critical so that everyone shares the same expectations. Clear communication of expectations, timelines, and evidence requirements helps avoid delays and confusion.

The assessment team should possess technical expertise to interpret scan results and system configurations as well as business understanding to evaluate process-related controls. Successful assessments require more than technical analysis. They rely on context-driven insights into how security controls align with day-to-day operations. When conducting interviews, it’s a good idea to take a respectful trust-but-verify approach. Using a risk-based sampling approach, assessment teams can request evidence to verify a security control is in place and working as intended.

Results

Arguably the most critical component of a cybersecurity risk assessment is the quality and actionability of the results. A strong assessment doesn’t just catalog issues. It prioritizes them based on risk and provides clear, achievable remediation plans. Final reports should include a defined risk-rating methodology that is clearly explained to the report audience and applied consistently to each finding. Cybersecurity risk assessments must consider inherent risk factors for an organization’s unique environment and business model, provide awareness of the program and control gaps, and identify the strengths and weaknesses of a program against the organization’s unique threat landscape. Higher-risk issues should be addressed immediately, while lower-risk concerns can be scheduled as part of a long-term remediation road map.

Each remediation plan should include an assigned owner, typically from the business unit affected by the issue, and be accompanied by a realistic timeline for resolution. Leadership should be involved in approving due dates and providing accountability. Follow-up is just as important as initial identification. Remediation efforts should be tracked, and confirmation of resolution should be documented once due dates have passed.

Cybersecurity risk assessment results should directly inform an organization’s security road map in alignment with business strategy. This road map should include long-term strategic initiatives and short-term tactical actions aimed at improving the organization’s security posture over time. Strategic plans can guide the organization from its current state toward a defined security objective – whether that’s remediating high-impact risks, implementing new technologies, or achieving greater alignment with a chosen cybersecurity framework. These initiatives often require cross-functional collaboration, budgeting, and multiphase execution. At the same time, tactical plans address immediate risks. While some findings might require longer-term remediation projects, tactical responses allow organizations to take action quickly through temporary compensating controls, policy updates, or system-level fixes that reduce exposure in the short term.

Cybersecurity risk assessments: The ultimate proactive defense

In a world of constant and ever more sophisticated threats, organizations cannot afford to treat cybersecurity as a reactive discipline. They must take a proactive, business-aware approach to cyber risk management. Protecting the organization and strengthening its security posture demands foresight, planning, and action. Whether as an organization’s first risk assessment, an annual internal penetration test, or a weekly vulnerability scan, cybersecurity risk assessments play a crucial role in proactive defense.

The value of an effective cybersecurity risk assessment lies in uncovering the gaps in security and empowering leadership to make informed, proactive decisions. By embracing assessments as a core component of the security program, organizations can position themselves to stay ahead of threats and build true cyber resilience in an unpredictable world.