Risk assessment

A risk assessment is a structured review that identifies what could go wrong with an organization's systems and data, how likely it is and how serious the impact would be.

A risk assessment typically looks at your important information and systems, the threats they face, existing weaknesses and the controls already in place. Each risk is rated by likelihood and impact so you can decide whether to reduce it, transfer it through insurance, avoid it or accept it.

Small businesses have limited budgets, so it is important to spend money where it makes the biggest difference. A risk assessment helps you prioritize, supports conversations with insurers and clients, and helps demonstrate the reasonable security arrangements expected under Alberta's PIPA. It also gives leadership a clear picture without needing technical expertise.

Practical tip: repeat the assessment at least once a year and whenever something significant changes, such as opening a new location, adopting a new cloud system or taking on a large contract. Keep the output short: a ranked list of risks with an owner and a target date for each action.