Prior to embarking on any security enhancement initiatives, organizations must first prioritize their security risks. This involves creating a risk matrix that helps visualize and rank risks based on two crucial dimensions: Severity and Likelihood. Severity encompasses the potential consequences of an event or incident, such as financial losses or reputational damage, while Likelihood focuses on the probability of a risk materializing. Assessing severity depends on various factors like industry sector, financial stability, and organizational size.
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Severity: The potential consequences of an event or incident (e.g., a $300,000 loss).
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Likelihood: The probability of a risk materializing (e.g., once in 10 years).
