How to Perform a Risk Assessment for Compliance
A solid risk assessment framework helps you identify, evaluate, and prioritize threats to your business — whether you follow ISO 27001, NIST CSF, or the Essential Eight.
⚙️ Step 1: Define Risk Criteria
Start by defining how you’ll score each risk:
- Likelihood: e.g. 1 = Rare, 5 = Almost Certain
- Impact: e.g. 1 = Low, 5 = Critical
Multiply these values to calculate a risk rating. Use a risk matrix to guide prioritization — high scores (≥15) fall into the red zone.
🕵️ Step 2: Identify Risks
Use multiple inputs to gather a comprehensive risk list:
- Workshops with stakeholders
- Incident reports and previous audit findings
- External threat intelligence or benchmarks
📌 Example Risks:
- Phishing attack leading to credential theft
- Unpatched systems exploited by malware
- Customer data loss due to accidental deletion
🧮 Step 3: Score and Rate Risks
Assign a score from 1 to 5 for both Likelihood and Impact. Then calculate:
Risk Rating = Likelihood × Impact
Example: “Ransomware on finance server” → Likelihood: 3, Impact: 5 → Rating: 15
🎯 Step 4: Prioritize and Plan Controls
Sort risks by score. For each critical or high-risk item, you should:
- Assign a clear risk owner
- Identify mitigation strategies (technical, procedural, or both)
- Define timelines, budget, and success criteria
🔄 Step 5: Review Regularly
Risks change — and so should your register:
- Review quarterly (or more often for volatile environments)
- Trigger reassessment after incidents, system changes, or audits
“Continuous improvement in risk management builds long-term resilience.”
Want a ready-to-use risk register template? Download it from our Downloads section.