What is Cybersecurity Risk Score?
A cybersecurity risk assessment evaluates your organization across access controls, data protection, incident response, and employee awareness.
The Formula
Formula
Risk Score = (Threats × Vulnerabilities × Impact) ÷ Controls
Worked Example
Worked example
An SME: access controls 7/10, data protection 6/10, incident response 4/10, awareness training 5/10.
- 01Access: 7/10 = 70%
- 02Data protection: 6/10 = 60%
- 03Incident response: 4/10 = 40%
- 04Awareness: 5/10 = 50%
- 05Overall readiness = (70 + 60 + 40 + 50) ÷ 400 × 100 = 55%
Result
Cybersecurity readiness is 55%, incident response is the critical weakness requiring immediate attention.
Why This Matters
Financial protection
The average US data breach costs $4.5 million according to IBM's Cost of a Data Breach Report 2024. Small businesses hit by ransomware pay $25,000-150,000 in ransom on average, and the total incident cost including downtime, recovery, and reputational damage is typically 5-10x the ransom amount itself.
Regulatory compliance
GDPR fines can reach $17.5 million or 4% of revenue. Adequate security is a legal requirement, not optional. In the US, the FTC has levied security-related fines exceeding $5 billion against companies failing to maintain reasonable data protections, and state-level laws like California's CCPA now expose businesses to per-record penalties regardless of size.
Business continuity
According to the National Cyber Security Alliance, 60% of SMEs close within 6 months of a major cyber attack. Prevention is existential, not just operational. Hiscox's 2024 Cyber Readiness Report found that SMEs with documented security frameworks spend 42% less on incident recovery and face 70% lower probability of a catastrophic breach than those relying on ad-hoc defenses.
Common Mistakes
Technology-only approach
According to Verizon's Data Breach Investigations Report, 95% of breaches involve human error. Employee training reduces incidents more than any single technology investment. IBM research confirms that companies running quarterly security awareness programs reduce successful phishing attacks by 70% compared to those running annual-only training, making behavioral change the highest-ROI security investment available.
No incident response plan
Without a plan, breach response takes 3x longer. Practice incident response before you need it. IBM's Cost of a Data Breach Report shows that organizations with a tested incident response plan contain breaches in an average of 194 days compared to 314 days for those without one, with the 120-day difference translating directly to $1.5 million in lower breach costs.
Assuming small means safe
According to Verizon's DBIR, 43% of cyber attacks target small businesses. Attackers see SMEs as soft targets with weak defenses. Hiscox research shows that SMEs with fewer than 10 employees experience the highest per-employee breach costs because fixed recovery costs are spread across a smaller revenue base, making the business impact of an attack proportionally catastrophic.
Industry Benchmarks
Source: Verizon Data Breach Investigations Report 2025