A cyber risk assessment is a structured evaluation of an organization’s technology, security practices and potential exposure to cyber threats. It examines systems, networks, policies, access controls and employee practices to identify vulnerabilities that could lead to ransomware attacks, data breaches, financial fraud or operational disruption. This assessment reduces the likelihood of an incident and the severity of impact on operations.

Companies use cyber risk assessments to help direct spending to resolve the most critical weaknesses, ensure compliance with government/industry regulations and reduce the challenges of expensive data breaches or downtime. It can also result in lower rates on cyber insurance coverage.