In 2024, the cost of data breaches in Australia has hit a record high of AUD $4.26 million. This is a staggering 27% increase since 2024, as outlined in IBM’s annual Cost of a Data Breach Report.
With organisations facing more sophisticated cyber threats than ever before – some 47 million data breaches reported – the need for proactive measures has never been more critical.
Phishing emails, Business Email Compromise (BEC) scams, fraud and more. These evolving threats continue to target businesses of all sizes, often with devastating consequences. IT risk assessments are a vital tool in an organisation’s IT management infrastructure, ensuring action before attackers can exploit weaknesses.
If you’re concerned about the security of your IT systems and data, this post covers everything you need to know about IT risk assessments and how businesses like yours can safeguard themselves from serious threats.
The cost of cyber incidents goes far beyond the immediate financial losses as a result of downtime. There are hidden impacts, too, particularly for industries with sensitive data and information. Even a small breach in cyber security can damage an organisation’s reputation beyond repair.
Interested to know more? We’ve got a post about some of the most prominent Australian security breaches that highlight the real cost of neglecting cybersecurity. Read More Here.
An IT risk assessment is a comprehensive and structured process designed to evaluate your business’s systems, networks, and data to uncover potential security threats before they can cause harm.
Ultimately, its goal is to identify any gaps in your security infrastructure early on and determine how to allocate resources to protect your organisation’s most valuable assets (its data, information systems, and intellectual property.)
When it comes to in-house IT, one of the most effective practices is ensuring a proper separation of duties (SoD). This means splitting key tasks between different staff members or departments to ensure that management, support and mitigation are fully covered.
By doing so, each team can focus on their specialised role allowing for more effective monitoring, quicker response times, and stronger oversight.
Businesses around the world are facing cyber attacks every 40 seconds. With data becoming more abundant and employees continuing to work remotely, the risks associated with cyber threats have never been higher.
The value of your data is irreplaceable. However, many businesses still employ reactive approaches to cyber security when the systems that support your business are critical and should not be overlooked.
An effective IT risk assessment is your best defence against these growing threats, ensuring your business stays protected:
Strong cybersecurity begins with identifying weaknesses before they can be exploited. Regular assessments measure how quickly and effectively your security infrastructure can respond to emerging threats as well as actively scan computer systems, networks, and business applications for vulnerabilities.
In response to evolving cyber threats, there are a number of regulations, laws and best practices that have been put into place to ensure the protection of both businesses and individuals.
In Australia, data protection and cybersecurity compliance are primarily governed by the Privacy Act 1988, which covers several Australian Privacy Principles (APPs). These provide clear guidelines for businesses on how to handle personal information, covering everything from its collection and use to its storage and disclosure.
One of the most critical aspects of Australian data protection laws is the Notifiable Data Breaches (NDB) Scheme. Under this scheme, organisations are required to notify both the Office of the Australian Information Commissioner (OAIC) and affected individuals when a significant data breach occurs—particularly if the breach is likely to cause serious harm.
Failing to comply with these regulations can lead to severe consequences, including reputational damage, financial penalties, and legal implications. Thus, regular IT risk assessments ensure that your business is fully compliant with these laws, helping you protect both your data and your organisation’s reputation while avoiding costly breaches.
The financial impact of system downtime can be significant, even if it isn’t directly caused by a cyber threat. Even a small issue can lead to lost productivity, missed opportunities, and frustrated customers. A proactive IT risk assessment helps identify areas of weakness in your infrastructure, allowing you to take action before the financial costs of downtime pile up. This can be outdated hardware, software flaws, or inadequate processes. The earlier these issues are caught, the less likely they are to escalate into major problems that could harm your bottom line.
An effective IT risk assessment doesn’t just identify security flaws. It also anticipates potential disruptions to business operations. Common issues that can be detected early include:
Beyond your data, your business reputation is one of your most valuable assets. A company’s reputation is built on trust in everyone involved (including staff, investors, and customers).
When critical systems go down or sensitive data is compromised, it’s not just the immediate financial loss that businesses face. IT failures can quickly erode any trust. Customers may feel their data is no longer secure, investors might question the company’s ability to manage risks, and employees could lose confidence in leadership’s capability to protect the business. As a result, the damage can be extensive—potentially losing clients, hampering business growth, and harming internal morale.
but with the right strategy and a strong risk management plan, you not only protect your systems but safeguard the long-term health and credibility of your business, too.
Many modern businesses face a range of common yet critical risks. Each is unique in its own set of identification processes and mitigation strategies. However, they all share one thing in common: addressing these risks is crucial for protecting your business’s operations, data, and reputation/
In Australia, there are a number of widely recognised frameworks used to assess and manage IT security risks. Each framework offers its own structured approach to identifying, addressing, and mitigating potential threats, allowing organisations to safeguard their IT systems, data, and operations effectively. Here’s a look at some of the key IT risk assessment frameworks:
COBIT is a comprehensive framework for IT governance and management that allows organisations to manage and assess IT risks across both business and technology domains.
It features two key processes: Ensure Risk Optimisation (EDM03) within the governance domain and Manage Risk (APO12) within the management domain. It includes two main processes: Ensure Risk Optimisation (EDM03) and Manage Risk (APO12) to help organisations weigh the costs and benefits of IT risks while connecting these to overall business risk management efforts.
The NIST Cybersecurity Framework 2.0 (NIST CSF) provides an updated, more robust approach to managing cybersecurity risks.
With six core functions, Identify, Protect, Detect, Respond, Recover, and the newly added Govern, this framework enhances the management of enterprise risk and supply chain security. It includes 22 categories and 106 sub-categories, offering a comprehensive guideline for Australian businesses to build robust cybersecurity systems and effectively manage related risks.
ISO 27001 is a globally recognised standard for information security management systems (ISMS). It provides businesses with a flexible framework to develop risk management processes tailored to their size and operational needs.
Achieving ISO 27001 certification demonstrates a business’s commitment to secure information management reduces the risk of cyberattacks and is prepared to handle emerging security risks.
The PSPF is primarily used by Australian government agencies and organisations that handle sensitive government data. It covers five main areas: governance, risk management, data security, cyber security, and physical security. The PSPF helps businesses identify and manage risks in these key areas to ensure strong security practices.
Developed by the Australian Signals Directorate, the Essential Eight is a baseline framework for protecting against cyber threats. This framework includes eight critical strategies:
This framework is used to measure how well an organisation’s security measures align with these strategies, helping businesses understand where they need to improve.
Conducting an IT Risk Assessment involves a number of factors and thorough planning to ensure your organisation can effectively identify, evaluate, and mitigate potential threats. Some factors to consider include:
Every IT risk assessment should start by taking stock of what systems, tools and equipment there are and need protection. This includes hardware, software, data, and even personnel. Classifying these assets based on sensitivity and strategic value helps prioritise security and management efforts, ensuring the most critical systems receive the highest level of protection.
Once key assets are identified, the next step is to determine any potential risks or threats. Vulnerabilities could be anything from outdated software to weak access controls (any gap that cybercriminals or system failures might exploit) or a lack of education, awareness or training. Security teams should use automated tools, vulnerability databases, and real-world testing to uncover weak spots before they become major issues.
It is important to consider that an IT risk assessment also measures how well current security controls are working and whether there is room for improvement. This includes reviewing technical measures like firewalls and access controls, as well as administrative policies and procedures. Any gaps identified highlight areas where security needs improvement.
Not all risks carry the same level of urgency. Businesses should use a structured approach to rank threats based on their likelihood and impact.
A common formula used is: Risk = Threat × Vulnerability × Asset.
For example:
Every security incident, no matter how small, is an opportunity to improve. After a breach or system failure, conducting a post-incident review helps identify what went wrong and how future occurrences can be prevented. These insights strengthen policies, improve response strategies, and ensure continuous learning within the organisation.
Penetration testing, or “ethical hacking”, simulates real-world cyberattacks so businesses can test their defences under controlled conditions. This process helps uncover vulnerabilities that automated scans might miss, making it an essential tool for proactive security management.
IT risks evolve constantly, which means management and maintenance efforts should, too. Continuous monitoring of system logs, network activity, and security alerts helps businesses detect anomalies before they become major problems. Regular assessments and updates ensure that systems measures remain effective against emerging risks.
Australian businesses deal with a range of IT risks and vulnerabilities, and more often than not these risks are unavoidable – but, with a proactive approach, they are manageable. Conducting regular IT risk assessments helps businesses identify vulnerabilities, prioritise threats, and implement effective security measures before issues escalate.
By understanding the key risks, using proven assessment frameworks, and continuously monitoring for new threats, organisations can strengthen IT infrastructure. But should you do it in-house or outsource to experts?
While managing IT risk assessments in-house gives businesses direct control over security processes, it requires skilled personnel, dedicated resources, and ongoing training to stay ahead of evolving threats. On the other hand, outsourcing to a professional, like the team at CRT Network Solutions, ensures access to specialised expertise, advanced threat detection tools, and industry best practices.
Don’t leave your business vulnerable to cyber threats, system failures, or compliance risks. At CRT Network Solutions, we provide comprehensive IT risk assessments and management services to help you stay ahead of potential issues. Get in touch today to safeguard your IT systems!
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