An ISO 27001 risk assessment helps organizations identify, evaluate, and prioritize risks to their information assets, ensuring security measures align with actual threats and vulnerabilities. Though there aren’t specific fines directly related to ISO 27001 non-compliance, consequences can be significant, potentially leading to loss of crucial government contracts or key vendors. Adherence to ISO 27001 risk assessment practices supports good practices across other regulatory frameworks.
An ISO 27001 risk assessment helps ensure appropriate security controls are in place to manage information security risks. It helps reduce the risk of security breaches and supports compliance efforts with regulations such as HIPAA, GDPR, and PCI DSS, which can carry significant penalties for non-compliance.
Whether you’re strengthening your existing ISMS or preparing for certifications, this guide provides a practical framework to manage information security risks systematically. You’ll also find real-world ISO 27001 risk assessment examples and templates to guide your process.
Let’s dive in.
Key steps in an ISO 27001 risk assessment
A structured evaluation ensures your risk management process is aligned with your organization’s information security objectives and that you comply with ISO 27001 requirements.
This section outlines the essential steps involved in conducting an ISO 27001 risk assessment.
1. Establish the context
This step involves understanding the organization’s internal and external environment, defining the ISMS scope, and setting risk criteria.
The context includes business objectives, regulatory requirements, and stakeholder expectations. A key aspect of setting context is to establish an acceptable level of risk that aligns with the organization’s risk appetite or risk acceptance criteria.
2. Identify assets, threats, and vulnerabilities
Create a list of information assets, including software, hardware and Internet of Things (IoT) devices. Your asset inventory should also include network infrastructure, storage locations, and data. Then, evaluate the criticality of each asset based on confidentiality, integrity, and availability requirements. It includes the data and industry-specific regulations your organization needs to comply with.
After classifying assets, outline vulnerabilities, such as outdated software, inadequate access controls, or insufficient employee training, that could be exploited to compromise your information systems. Some common threats and vulnerabilities you need to factor in are as follows:
- Malware, ransomware, phishing attacks.
- System hacking and unauthorized access.
- Misconfigured cloud services.
- Weak or default passwords.
- Unpatched software or outdated systems.
- Misuse of privileges or unauthorized activities.
- Lack of employee background checks.
- Insider threats exploiting technical systems.
3. Analyze and evaluate risks
After identifying threats and vulnerabilities, determine the risks posed by your assets and assess the potential likelihood of each risk occurring and its business impact. Consider tangible impacts such as monetary loss and intangible effects like the loss of a brand’s reputation and customer trust, as well as legal or contractual issues.
You can employ a 5-point scale method (commonly used in qualitative assessments) to score the potential likelihood of the risk occurring from one to five, with one indicating the least possibility and five indicating the highest probability of the incident happening. You should also evaluate the potential business impact if a risk materializes.
| Asset | Threat | Vulnerability | Risk description | Business impact | Potential likelihood |
| Customer data | Cyberattack | Unpatched server software | Unauthorized access to sensitive customer data | Legal penalties, reputational damage | 4 |
| Web applications | DDoS attack | Lack of network defense | Service disruption | Loss of revenue and customer trust | 3 |
| User credentials | Phishing attack (social engineering) | Poor employee awareness/training | Attackers trick users into revealing passwords, leading to account compromise. | Unauthorized access, data breach, financial loss, regulatory penalties | 2 |
The risk scores will help you prioritize risk management efforts and focus on addressing the high-impact risks..
4. Choose and implement risk treatments
Risk treatment options record your organization’s planned responses to the threats, vulnerabilities, and risks you have identified in your ISO 27001 risk assessment. The ISO 27001 standard outlines four possible actions:
- Treat: Reduce risks by using the controls from Annex A controls of ISO/IEC 27001:2022 and safeguards (e.g., firewalls, training).
- Avoid: Prevent the circumstances causing the risk, such as discontinuing risky activities to avoid the risks.
- Transfer: Share the burden of the risk by obtaining insurance coverage or outsourcing management to a third party. Outsourcing does not mitigate the risk; it transfers the responsibility, but residual risk often remains and must be monitored. Moreover, the ultimate accountability rests with the organization.
- Accept: Accept the risk if it is within the organization’s risk tolerance or if the cost of treatment is greater than the potential damage. ISO 27001 mandates the organizations to formally approve and document the risk acceptance.
The chosen option should align with the organization’s risk appetite, compliance requirements, and business objectives. Each decision must be documented in the ISO 27001 risk treatment plan, which outlines the rationale behind each selected treatment option. The plan also includes responsibilities, timelines, and implementation actions to ensure accountability.
You can use a tabular format to document various risks and identify appropriate treatment options.
| Risk ID | 001 | 002 | 003 |
| Risk Description | Unauthorized access to sensitive customer data | Service disruption | Attackers trick users into revealing access credentials |
| Asset | Customer data | Web applications | User credentials |
| Threat | Cyberattack/data breach | DDoS attack | Phishing attack |
| Treatment Option | Treat | Transfer | Treat |
| Controls | Vulnerability assessment/ scanning | Implement cloud-based DDoS protection service | Multifactor authentication, strong password |
| Responsibility | Database administrator | IT infrastructure head | IT security manager |
| Status | Planned | In-Progress | In-Progress |
5. Documentation
Organizations should record all identified risks, assessment criteria, treatment decisions, and residual risks in a structured format, such as a risk register and treatment plan.
The document outlines the risk analysis method, likelihood and impact ratings, responsible parties, and timelines.
The auditor will check the policies, procedures, and assessment records for compliance. It helps auditors confirm that your organization has followed the risk management process in accordance with ISO 27001 guidelines. Proper documentation and reporting support compliance with ISO 27001 requirements, facilitate stakeholder communication, and enable ongoing risk monitoring and review.
Risk assessment methodologies
Risk assessment methodologies define how organizations identify, analyze, and evaluate risks to their information assets. ISO 27001 requires the organization to define its own risk assessment methodology that is consistent, repeatable, and based on criteria for risk acceptance and evaluation as per clause 6.1.2. Some key risk assessment methodologies are as follows.
1. Asset-based approach
It is a widely used risk assessment methodology that identifies and protects information assets such as hardware, software, networks, data, and other critical assets. This approach involves taking an inventory of all assets, evaluating the effectiveness of existing controls, and identifying each asset’s threats and vulnerabilities and the potential impact of risk. The asset-based approach supports compliance efforts with data security and regulatory frameworks, such as HIPAA and GDPR.
The asset-based approach aligns with ISO 27001’s requirement for a systematic, repeatable process, ensuring proportionate management of risks for confidentiality, integrity, and availability.
2. Threat-based approach
The threat-based approach involves identifying potential threats, such as cyberattacks, insider misuse, or system failures, that could harm your organization’s information security. After identifying threats, organizations analyze the vulnerabilities that those threats could exploit and determine the assets at risk.
The method emphasizes anticipating and mitigating external or internal threats before they can exploit weaknesses. It is particularly useful for industries where information is a critical operational asset or directly tied to service delivery, such as financial services and healthcare.
These industries are highly vulnerable to cyber risks, and if threats successfully exploit weaknesses, they can significantly disrupt their core business operations. This approach helps organizations proactively prepare for evolving threats and ensures that risk treatment plans are designed to neutralize or minimize specific attack scenarios.
3. Vulnerability-based approach
Vulnerabilities can be exploited to carry out ransomware, malware, or DDoS attacks. Your organization may also have other common vulnerabilities, such as cloud misconfiguration, unsecured networks and communications, and obsolete hardware and software. New vulnerabilities continue to emerge at a faster rate, recording a 38% year-on-year increase in 2024 compared to the previous year.
A vulnerability-based risk assessment discovers security weaknesses in your organization’s IT landscape and prioritizes them for mitigation. The approach assesses how susceptible your IT systems are to known vulnerabilities, assigns severity levels, and recommends mitigation and remediation measures.
As the cyberattack surface of organizations expands with the adoption of cloud and emerging technologies, a vulnerability-based approach is a useful tool for protecting information assets.
4. Scenario analysis
The scenario analysis method involves creating hypothetical scenarios to evaluate the potential impact of various threats or vulnerabilities on an organization’s information assets by focusing on specific, real-world situations like accidental data deletion, instead of broad, theoretical assessments.
Scenario analysis helps organizations visualize how risks unfold in real-world contexts, making it easier to assess likelihood and impact. It is typically used where quantifying likelihood is difficult and the focus is more on preparedness or resilience than precision. It enhances decision-making, specifically in situations where multiple solutions are available.
Comparison with other risk assessments
1. Risk assessment vs. gap analysis
A risk assessment guides the selection of security controls by evaluating risks to information assets, considering relevant threats, vulnerabilities, and potential impacts. Gap analysis helps assess alignment with ISO 27001 framework. The two methods combined provide a comprehensive view of security risks and compliance status.
| Criteria | Risk assessment | Gap analysis |
| Objective | Identify threats, vulnerabilities, and risks to information assets to prioritize controls. | Compares current security practices against ISO 27001 requirements to identify gaps. |
| Scope | It focuses on the likelihood and impact of security incidents on all information assets. | Evaluates the implementation of Annex A controls and clauses. It covers policies, procedures, and documentation. |
| Outcome | It provides a prioritized list of risks with risk treatment plans, including selected treatment options, responsibilities, timelines and mitigating actions. | Gap analysis report highlights gaps and improvement steps. |
| Method | Evaluates risks using qualitative, quantitative, or hybrid approaches to plan and prioritize mitigating actions. Risk-based methods are qualitative, quantitative, or hybrid. | It involves benchmarking existing controls against ISO 27001 Annex A. Gap analysis uses a checklist or criteria-based comparison against the ISO 27001 standard. |
| Requirements | Required by ISO 27001 Clause 6 for ISMS design. | It supports ISO 27001 readiness and is helpful for the development of the Statement of Applicability. |
| Tming | It is an ongoing process integrated into risk management after the ISMS context has been established. | Conducted periodically (e.g., pre-audit or during ISMS implementation). It is often done at the beginning of ISO 27001 implementation or for internal audits. |
2. Risk assessment vs. business impact analysis
A risk assessment supports proactive risk mitigation by focusing on preventing incidents, while a business impact analysis helps prepare for recovery post-incident by addressing continuity and resilience.
| Aspect | Risk assessment | Business Impact Analysis (BIA) |
| Objective | Identify, analyze, and evaluate risks to information assets. | Assesses the impact of disruptions on critical business functions and sets recovery objectives. |
| Scope | It assesses information security risks across systems, people, and processes. | It assesses business processes, organizational resources (people, technology, premises), and interdependencies. |
| Outcome | It provides a prioritized list of risks with risk treatment plans, including mitigating actions. | It includes business recovery priorities and objectives such as Recovery Time Objectives (RTO) and the maximum tolerable period of Disruption (MTPD). |
| Method | Calculates risk scores to plan and prioritize mitigating actions. Risk-based methods are qualitative, quantitative, or hybrid. | Analyzes impact over time to determine recovery timelines and resource dependencies. A BIA evaluates financial, legal, reputational, and operational effects. |
| Requirement | Required by ISO 27001 Clause 6 for ISMS design. | Common in ISO 22301 and business continuity planning. |
| Timing | It is an ongoing process integrated into risk management after the ISMS context has been established. | It is conducted periodically, such as during ISMS audit, ISO 22301 implementation, or major organizational initiatives like business continuity planning or disaster recovery setup. |
3. Risk assessment vs. internal audit
A risk assessment identifies and evaluates potential information security risks, guiding the selection of appropriate ISMS controls. An internal audit verifies whether the organization’s controls and processes are implemented and maintained effectively in accordance with ISO 27001.
| Aspect | Risk Assessment | Internal Audit |
| Objective | Identify, evaluate, and prioritize information security risks to determine appropriate controls. | Evaluate whether ISMS processes and controls comply with ISO 27001 requirements and are effectively implemented and maintained. |
| Scope | It assesses information security risks across systems, people, and processes. | It examines all components of the ISMS, including policies, controls, and risk treatment implementation and maintenance. |
| Outcome | It provides a prioritized list of risks with risk treatment plans, including mitigating actions. | The outcome is an audit report highlighting non-conformities, observations, and corrective action plans. |
| Method | Calculates risk scores to plan and prioritize mitigating actions. Risk-based methods are qualitative, quantitative, or hybrid. | It follows a systematic review process using checklists, interviews, and evidence gathering to verify compliance and effectiveness. |
| Requirement | Required by ISO 27001 Clause 6.1.2 for identifying and assessing information security risks. | Required by ISO 27001 Clause 9.2. |
| Timing | It is an ongoing process integrated into risk management after establishing the ISMS context. | Performed after implementation of controls and at planned intervals (e.g., annually or per audit schedule). |
Tools, templates, and best practices
To successfully implement ISO 27001 risk assessments, you need the right combination of tools, templates, and best practices. These resources support systematic risk management and promote consistency across assessments, implementation, and ongoing ISMS maintenance.
Risk assessment templates and software
Risk assessment templates help you prepare a quick assessment of risks. They provide standardized formats for documenting assets, threats, vulnerabilities, and risk treatments and are easy to update.
For example, Scrut, a risk management and compliance automation platform, streamlines and automates the ISO 27001 risk assessment process.
Scrut provides templates and tools to document risks, evaluate impact, and implement mitigation plans. Access a library of pre-built, customizable templates for commonly required ISO 27001 policies like information security, incident management, and access control. This enables organizations to ensure their documentation meets audit requirements.
The platform offers automation, scoring models, and centralized data repositories to provide a comprehensive view of risk posture. It helps simplify collaboration, enhance traceability, and save time, making the risk assessment process more manageable and audit-ready.
Best practices and continuous monitoring
Adopting best practices, such as defining clear risk criteria and involving key stakeholders, strengthens the effectiveness of the risk assessment process. Regular reviews and updates ensure that assessments review organizational preparedness to counter new threats.
Qualitative vs. quantitative risk assessment
Qualitative and quantitative risk assessments are commonly used to assess and manage risks. The two differ significantly in their methodologies and outcomes.
Quantitative risk assessment uses numerical values such as financial cost, percentages, or statistical data to estimate risk levels. It can provide a more precise evaluation and supports cost-benefit analysis for treatment options. However, quantitative risk assessment may not be reliable in all situations since some risks can’t be easily measured. Additionally, it requires reliable data and more complex calculations for which organizations may not have in-house expertise.
Qualitative risk assessments are subjective, relying on expert judgment and experience to assess the likelihood and impact of risks. They are easy to implement but may lack precision. The method uses descriptive scales (e.g., low, medium, high) and can be implemented quickly. They are useful for organizations with limited data or requiring a high-level view of risks. This method is easier to communicate and for stakeholders to understand.
Choosing between the two depends on organizational requirements, data availability, in-house expertise, and decision-making needs.
Incorporating ISO 27005 and ISO 31000
ISO 27005 provides specific guidance on information security risk assessment, while ISO 31000 offers a general framework for risk management. By incorporating ISO 27005 & ISO 31000, you can enhance the effectiveness of ISO 27001 information security risk assessments.
ISO 27005 provides detailed steps for identifying, analyzing, and treating information security risks. It helps organizations consistently align risk assessment with ISO 27001’s Clause 6.1.2, which requires identifying risks to the confidentiality, integrity, and availability of information.
ISO 31000 offers a broader risk management framework and principles applicable across all types of risk. It provides guidelines on how to organize risks, which can be applied to information security risk management.
ISO 27005 and ISO 31000 complement ISO 27001 by promoting a structured, enterprise-wide risk management culture.
Conclusion
A well-implemented ISO 27001 risk assessment is the foundation of a resilient ISMS, enabling organizations to proactively identify vulnerabilities, prioritize risks, and implement tailored controls. By following a structured, step-by-step approach, you can build a resilient and compliant ISMS that comprehensively protects your organization’s information assets.
Additionally, you can use a compliance automation platform like Scrut, which provides automated workflows for conducting risk assessments and executing treatment plans for risk remediation, acceptance, transference, or avoidance. Users can quickly build a risk register by selecting from Scrut’s extensive risk library or adding custom risks. Each risk can be assigned quantifiable scores (inherent and residual), and treatment plans can be developed and tracked within the platform—all through a single interface.
Using Scrut, organizations can easily collaborate with auditors and ISO 27001 consultants. Organizations can respond to audit requests, share evidence artifacts, and monitor audit status directly within the platform. Scrut strengthens ISO 27001 compliance with pre-built controls, while continuous compliance monitoring ensures audit readiness.
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FAQs
What does ISO 27001 stand for?
ISO 27001 is the standard for information security management systems (ISMS) and is published by the International Organization for Standardization (ISO). It provides guidance to organizations on establishing, implementing, maintaining, and continually improving their ISMS.
Is a risk assessment mandatory for ISO 27001 certification?
Yes, a risk assessment is mandatory for ISO 27001 certification. It is a core requirement under Clause 6.1.2 and is essential to demonstrate an organization’s capabilities in identifying, assessing, and managing information security risks.
What is the difference between risk assessment and risk treatment in ISO 27001?
In ISO 27001, risk assessment involves identifying, analyzing, and evaluating potential information security risks. It focuses on understanding threats, vulnerabilities, likelihood, and their impact. It generates a list of prioritized risks to enable the organization to plan appropriate treatment options, such as mitigation, avoidance, or acceptance.
Risk treatment focuses on selecting and implementing actions to address those identified risks.
Is there a standard template for ISO 27001 risk assessment?
There is no official prescribed ISO 27001 risk assessment template. However, organizations can create or adopt a structured, consistent format that aligns with clause 6.1.2 of the standard. They can also use templates from compliance solutions providers.
Can I automate ISO 27001 risk assessments?
Risk management and compliance automation tools like Scrut help you automate ISO 27001 risk assessments. The platform provides a window to help you identify, assess, and mitigate IT and cyber risks. The automated workflows help you streamline risk management, save time and cost, and improve accuracy.
