Calculating Risk Scores Best Practice
- Identify and assess potential risks: Conduct a comprehensive risk assessment to identify vulnerabilities in your network infrastructure, applications, data storage, and employee practices.
- Determine likelihood and impact: Assess the likelihood and potential impact of each risk, considering factors like successful attack probability, data loss, financial implications, and reputational damage.
- Assign risk ratings: Use a numerical or qualitative rating system to assign risk ratings based on likelihood and impact assessments.
- Calculate overall risk score: Multiply the likelihood rating by the impact rating for each risk and sum up the results to get your organization's overall cyber security risk score.
- Regularly update and reassess: Cyber threats evolve, so conduct periodic risk assessments and adjust your risk scores accordingly to stay proactive.
- Consider industry standards: Compare your risk scores against industry standards and benchmarks to gauge your performance and identify areas for improvement.