What Does a “Good Enough” Cyber Risk Assessment Look Like in 2025?

Cyber risk assessments can feel daunting, especially for SMBs without dedicated security teams. However, with cyber insurance providers demanding more evident proof of risk awareness and mitigation, a “good enough” risk assessment is more crucial than ever.

A business owner conducts a cybersecurity risk assessment to evaluate potential threats and their associated risk levels.

Why It Matters

Insurers want to see that you:

• Understand your critical systems and data flows

• Are you aware of the risks tied to them

• Have a plan to reduce those risks

This helps them determine whether you’re a low-risk or high-risk client — and what level of coverage or premium you’ll get.

The Core Components

A well-rounded cyber risk assessment includes:

1. Asset Inventory – What devices, systems, apps, and data stores are in use?

2. Threat Identification – What Could Go Wrong? Think phishing, ransomware, insider threats.

3. Vulnerability Mapping – What are your weak points? Missing patches, lack of MFA, weak passwords.

4. Impact and Likelihood Ratings – What’s the chance this could happen, and what would the damage be?

5. Mitigation Actions – What controls are in place, and what’s still on the to-do list?

Tips for SMBs

• Don’t overcomplicate it. Use a spreadsheet if needed.

• Focus on your 5–10 most critical systems.

• Involve non-IT staff to capture overlooked risks (like finance handling invoices via email).

• Review it at least once a year or after major IT changes.

Insurer Red Flags

You could be seen as high-risk if your risk assessment:

• Is more than 12 months old

• Doesn’t mention cloud apps or remote access

• Lists no planned improvements

The Bottom Line

A solid cyber risk assessment doesn’t have to be perfect. It just has to be real, recent, and relevant. It shows you’re thinking ahead and managing your exposure to exactly what insurers want to see.