How to conduct a cyber security risk assessment
Conducting an IT security risk assessment for small businesses is no longer a best practice – it is a necessity. With cyber threats on the rise, small and medium-sized businesses in Australia are increasingly targeted due to perceived vulnerabilities and limited defences. Understanding how to assess your organisation’s risks is the first step to building strong cyber resilience.
Below, we outline a structured and practical approach to help small businesses navigate their own cyber security risk assessments.
What is an IT security risk assessment?
An IT security risk assessment identifies and evaluates the risks that could compromise the confidentiality, integrity, or availability of your digital systems and data. The process helps determine what assets need protection, what threats exist, and how vulnerable your systems are. It also guides decision-making on how to manage these risks effectively.
Step 1: Identify your critical assets and data
Start by listing your business’s most important assets. These could include:
- Financial records
- Customer and employee data
- Operational software and systems
- Intellectual property
Once identified, assess where these assets are stored, who can access them, and how they are currently protected.
Step 2: Understand your threat landscape
Next, consider the types of threats that could impact your business. Common threats facing small businesses include:
- Phishing and ransomware attacks
- Insider threats or employee negligence
- System failures or outdated software
- Data breaches due to poor access controls
Being aware of potential attack vectors helps you focus your security measures where they are most needed.
Step 3: Assess vulnerabilities
Every system has weak spots. These could be unpatched software, poor password practices, or insufficient staff training. Evaluate how exposed your systems are to each threat and document any gaps in your current security measures.
It is recommended to regularly update this assessment to reflect new vulnerabilities as they arise.
Step 4: Evaluate the risk
For each threat and vulnerability, assess the potential impact and likelihood of it occurring. This will help you prioritise which risks require immediate attention. A simple risk matrix (likelihood vs. impact) can help visualise this clearly.
Step 5: Develop mitigation strategies
Once risks are prioritised, develop a plan to reduce or eliminate them. Strategies may include:
- Implementing multi-factor authentication
- Running regular data backups
- Providing cyber awareness training to staff
- Updating software and enforcing access controls
Every mitigation plan should be tailored to your business’s size, industry, and budget.
Step 6: Document and review
Documenting your IT security risk assessment is essential for compliance and accountability. Include details on the assets reviewed, threats identified, risk ratings, and actions taken.
Additionally, this process should not be a one-time activity. Schedule regular reviews—especially after any major system changes or incidents.
Need help assessing your cyber risks?
If you are unsure where to begin or would like expert guidance, explore 4walls’ cyber security assessments. Our team provides clear, structured evaluations designed for small businesses.
A thorough IT security risk assessment does not just reduce risk—it strengthens your business’s ability to grow with confidence.
