How to Perform an IT Risk Assessment

If you don’t know where your next breach is likely to hit, you’re already behind.

Cyberattacks are accelerating, and compliance expectations are tightening. Yet, most organizations are still flying blind when it comes to IT risk. There is no baseline, no repeatable process, and no clear visibility into what’s vulnerable or how exposed they are.

The result? Gaps that grow unnoticed until it’s too late. In 2024, the average data breach cost hit $4.88 million, with more than half of security leaders reporting increased attacks. This isn’t just a technical challenge; it threatens your revenue, operations, and reputation.

Whether you run IT or advise leadership on risk, the stakes are the same: you need a structured, proactive approach to identify vulnerabilities, prioritize threats, and act before they become headlines.

This guide shows you exactly how to conduct a high-impact IT risk assessment, from mapping assets to implementing controls. You’ll also see how Keystone helps your organization build resilience, reduce risk, and align IT security with business strategy.

Key takeaways

• A strong risk assessment does more than find gaps. It aligns IT, finance, and leadership by connecting technical vulnerabilities to real business impact.
• One-time assessments won’t keep you safe. Threats evolve quickly, so your risk model needs to stay current through regular reviews and updates after major changes or incidents.
• Your most dangerous asset might be the one you forgot. Untracked endpoints, outdated software, and third-party integrations often become the weakest link in your security posture.
• Every critical risk needs an owner and a deadline. Without clear accountability, even well-prioritized threats fall through the cracks and remain unresolved.
• Frameworks are only useful if applied consistently. Whether you use NIST, ISO, or COBIT, the real value comes from using the steps to guide action and measure improvement over time.

Understanding IT risk assessments

What is IT risk?

IT risk is the potential loss or disruption to systems, data, or processes due to cyber threats, errors, or natural events.

Objectives of an IT risk assessment

Before defending your infrastructure, you need a clear picture of what’s at stake and where you’re exposed. A structured IT risk assessment reveals critical gaps and helps you build a strategy that aligns with real business risk.

1. Identify potential threats and vulnerabilities affecting hardware, software, data, or users.
2. Evaluate the likelihood and impact to calculate a realistic risk level.
3. Check current IT security measures and spot any weaknesses.
4. Prioritize risks so you focus resources where they matter most.
5. Inform stakeholders and guide investment in effective security measures.

Why conduct regular assessments?

Security isn’t static. Threats evolve, IT systems change, and yesterday’s controls may not hold up tomorrow. Regular assessments keep your defenses current, your stakeholders informed, and your business protected.

• Proactivity: Organizations that react only after an incident are 60% more likely to suffer a breach within two years (Hyperproof).
• Compliance: HIPAA, PCI DSS, and ISO 27001 frameworks require documented risk management.
• Business impact: Unplanned downtime harms revenue and brand trust.
• Cost control: Addressing a weakness before it is exploited costs far less than a full-scale incident response.
• Continuous improvement: Clear metrics let you track whether new controls reduce identified risks over time.

IT risk assessment process: Eight essential steps

1. Asset identification

Start your IT risk assessment by listing and categorizing your assets. Each type of asset carries different risks and potential business impact:

• Hardware includes servers, laptops, and IoT devices. If compromised, these can lead to productivity loss or major service outages.
• Software refers to critical platforms like ERP systems or database engines, where issues may cause transaction errors or loss of operational data.
• Data encompasses customer records, intellectual property, and backups. A breach here can trigger regulatory fines and serious reputational damage.
• People include administrators, developers, and vendors. Misuse or mishandling of access by insiders can result in credential misuse or data exposure.

Tag assets by confidentiality, integrity, and availability (CIA) to prioritize what matters most.

2. Threat identification

A threat is any intentional or accidental event that could exploit a weakness. Common categories include:

• Malware (e.g., ransomware, worms)
• Phishing or social engineering attacks
• Denial-of-service campaigns
• Insider threats (malicious or careless employees)
• Natural disasters (fire, flood, severe weather)

Reference threat intel feeds from CISA, NIST, and ISACs to track active attack patterns.

3. Vulnerability identification

A vulnerability is a weakness that allows a threat to succeed. Use:

• Automated scanners for missing patches, weak configurations, or exposed services
• Configuration reviews to compare settings against security baselines
• Penetration testing to replicate attacker techniques
• Employee surveys to uncover training gaps

Document each finding with the asset owner, location, and severity.

4. Risk analysis

Combine likelihood and impact to estimate overall risk. Two common approaches:

• Qualitative risk analysis scores risks on a 1–5 scale and visualizes them using a heat map. This method is fast and effective when you don’t have precise data, making it ideal for quick prioritization.
• Quantitative risk analysis, on the other hand, assigns actual monetary values to risks using formulas like Annualized Loss Expectancy (ALE). It’s beneficial when presenting detailed, data-driven justifications to executives or finance teams.

Whichever method you choose, apply it consistently so leadership can compare potential impact across projects.

5. Evaluating and mitigating risk

Use your analysis results to rank risks. Set risk acceptance thresholds, often tied to compliance rules or executive appetite. Anything above the threshold enters the mitigation queue.

6. Risk mitigation strategies

Once you’ve prioritized risks, the next move is tactical: decide how to handle them. Every risk falls into one of four categories, each with a distinct strategy based on business impact, cost, and control.

• Avoid: Choose this strategy when the risk outweighs the benefit of the activity or asset. For example, you might retire an obsolete file server that no longer supports secure protocols rather than trying to secure it.
• Reduce: Use this to decrease a risk’s likelihood or impact. Examples include enabling multi-factor authentication, applying security patches, or segmenting your network.
• Transfer: This approach is appropriate when another party is better equipped to absorb the impact. Purchasing cyber-insurance is a typical example, as it helps shift the financial burden of a potential incident.
• Accept: Sometimes, the cost of mitigation is higher than the potential loss. You may accept the risk in these cases, such as exposing a low-value kiosk device in a public lobby.

For each high-priority risk, assign an owner, deadline, and remediation plan (e.g., implement new access controls, harden firewalls, deliver security-awareness training).

7. Documentation, reporting, and review

A solid cybersecurity risk assessment report should include:

1. Executive summary – key findings in business language.
2. Methodology – frameworks, tools, and risk management process used.
3. Asset and threat inventories.
4. Risk register – ranked list with recommended actions.
5. Timeline and budget estimates for mitigation.

Present findings to stakeholders such as the CIO, legal counsel, and department heads to secure funding and support.

8. Review and update

Threats evolve rapidly; your assessment can’t be a one-and-done exercise. Schedule reviews:

• Quarterly for critical industries or regulated data.
• After major changes, new applications, mergers, or cloud migrations.
• Following incidents to verify that security controls worked as planned.

Continuous monitoring tools can alert you when asset inventories change or new security incidents arise.

Tools and frameworks for an IT risk assessment

Popular risk management frameworks

NIST RMF (Risk Management Framework)

This framework, overseen by the U.S. National Institute of Standards and Technology (NIST), is known for its comprehensive structure. It aligns closely with the NIST Cybersecurity Framework (CSF), making it ideal for federal agencies, contractors, or any organization that wants a detailed, control-based approach to risk management.

ISO 27005

Published by the International Organization for Standardization (ISO), ISO 27005 is a globally recognized framework designed for information security risk management. It integrates seamlessly with ISO 27001, making it a preferred option for organizations pursuing or maintaining ISO certification.

COBIT 2019

Developed by ISACA, COBIT 2019 emphasizes governance and aligns IT risk with broader business objectives. It’s beneficial for organizations seeking to balance technical controls with strategic decision-making at the executive level.

Vulnerability scanning tools

Once you’ve identified your critical assets and potential threats, you need tools to scan, detect, and prioritize vulnerabilities across your environment. These solutions help automate discovery, reduce human error, and accelerate your risk assessment process:

• Tenable Nessus – A powerful, widely used scanner with a rich plugin library for identifying vulnerabilities across both on-premise and cloud infrastructure.
• Rapid7 InsightVM – Known for its dynamic risk prioritization based on real-world exploitability and active threat context.
• OpenVAS – A solid open-source alternative for teams that need cost-effective scanning without sacrificing functionality.

Risk assessment software

Platforms such as LogicGate, ServiceNow GRC, and Archer centralize asset data, automate questionnaires, and generate dashboards so you can prioritize risks quickly and track risk mitigation progress.

How Keystone supports your IT risk assessment

Managing business operations, stakeholders, and growth is already enough on your plate. Tackling cybersecurity and risk frameworks shouldn’t slow you down. That’s where Keystone comes in.

We help you make lasting improvements, not just tick compliance boxes. We help you build a stronger, more resilient organization by taking a structured, evidence-based approach to risk management. Our team brings deep experience and industry-leading tools, and we help align your security plans with how your business works. 

Here’s how we work with you:

• Scoping workshop – We map your information assets, understand your business processes, and define clear objectives.
• Automated discovery – Our enterprise-grade scanners detect known and zero-day vulnerabilities across your IT infrastructure.
• Threat modeling – We evaluate your exposure by mapping real-world attack scenarios to your assets.
• Risk analysis – We translate cybersecurity risks into business terms with precise impact analysis and practical controls.
• Remediation roadmap – You’ll receive a prioritized, cost-effective plan with timelines and budget guidance.

Solutions tailored to your environment

Every organization faces unique risks. Your security strategy should reflect that. Keystone delivers flexible, high-impact services that meet you where you are and scale with your needs.

• Vulnerability assessments with continuous scanning
• Penetration testing to identify exploitable weaknesses
• Security audits aligned with frameworks like ISO 27001, SOC 2, and HIPAA
• Custom risk assessment templates for internal use and recurring evaluations
• Compliance assessments that simplify regulatory reporting and audits

Why teams trust Keystone 

Stay ahead of emerging threats with automated tools that detect and track weaknesses across your infrastructure before attackers do.

• Independent perspective – Our assessments are unbiased, vendor-agnostic, and free from internal politics.
• Deep expertise – We’ve helped security teams across healthcare, finance, manufacturing, and more.
• Clear communication – You will get insights in plain language that tie risk to operational impact, not just technical jargon.
• Proven outcomes – Our clients see measurable improvements in their security posture, fewer incidents, and stronger compliance readiness.

Talk to us about your next IT risk assessment and how we can support your team from start to finish.

IT risk assessment frameworks at a glance

No matter your goal, compliance or internal improvements, the right framework helps you stay consistent. Here’s how the top three align across the risk assessment lifecycle.

Step	NIST RMF	ISO 27005	COBIT 2019
Asset inventory	Categorize	Context establishment	Evaluate, align, and plan
Threat analysis	Select controls	Risk analysis	APO12, DSS04
Risk calculation	Assess	Risk evaluation	PO09
Mitigation	Implement controls	Risk treatment	Monitor, evaluate
Review	Monitor	Risk monitoring	MEAs

This comparison shows that each framework covers the same lifecycle; you simply pick the language and depth that suit your organization.

Conclusion

You now have a clear roadmap for conducting an effective IT risk assessment. By identifying assets, uncovering vulnerabilities, calculating risk levels, and taking strategic action, you can protect your information systems, strengthen data security, and align your security policies with business goals.

Keystone is ready to help you implement these steps. Whether you are building your first assessment or refining an existing strategy, we provide the expertise and support through every stage of the risk assessment, from discovery to follow-up,  to reduce your organization’s risk and improve long-term resilience.

Want help applying this framework in your organization? Contact Keystone for a tailored walkthrough.