Risk Assessment

Learning Objectives Define the core components of risk: assets, threats, vulnerabilities, likelihood, and impact. Identify potential assets, threats, and vulnerabilities in a given computer system scenario. Apply the qualitative risk formula (Risk = Likelihood x Impact) to calculate a risk score. Use a risk matrix to categorize and prioritize different cybersecurity risks. Differentiate between a threat and a vulnerability. Analyze a simple system, such as a web application or database, and propose a list of potential risks. Your new social media app has 10,000 users! 🥳 But what if a hacker steals their passwords? How do you decide what to protect first? Risk Assessment is the process of identifying, analyzing, and evaluating what could go wrong with our computer systems....

TermDefinitionExample AssetAnything of value to an organization or individual that needs protection.For a school, the student grades database is a critical asset. For a gamer, their account with rare in-game items is an asset. ThreatAny potential event or actor that could cause harm to an asset.A malicious hacker attempting to breach a network, a server power outage, or an employee accidentally deleting a file. VulnerabilityA weakness or gap in a system's security that a threat can exploit to cause harm.A web server that hasn't been updated with the latest security patches, or a database that allows for SQL injection attacks. LikelihoodThe probability or chance that a specific threat will exploit a specific vulnerability.The likelihood of a phishing attack targeting school emplo...

Qualitative Risk Calculation Formula Risk = Likelihood × Impact This is the fundamental formula for calculating a risk score. Likelihood and Impact are typically rated on a numerical scale (e.g., 1-5) or with qualitative labels (Low, Medium, High). The resulting score helps prioritize which risks to address first. The Risk Assessment Process 1. Identify Assets -> 2. Identify Threats & Vulnerabilities -> 3. Analyze Likelihood & Impact -> 4. Calculate & Prioritize Risk This is the step-by-step mental model for performing a risk assessment. Following this order ensures a structured and thorough analysis, preventing you from missing crucial steps. The Risk Matrix A grid with Likelihood on one axis and Impact on the other. The cells are color-coded (e.g...