Annual risk assessment is a fundamental element in ensuring the security of network and information systems (NIS) and compliance with national cybersecurity legislation and implementing requirements. A well-structured risk assessment enables organizations to identify relevant threats, evaluate their potential impact, and make informed decisions on risk treatment.
These recommendations are intended to support organizations in conducting annual risk assessments in a consistent and systematic manner, strengthening risk management maturity and ensuring alignment with legal and best practice requirements.
Why is annual risk assessment essential?
A risk management system that is not aligned with standards or good practice represents a major obstacle to effective NIS security. Regular risk assessment allows organizations not only to meet regulatory obligations but also to better understand vulnerabilities, prioritize risks, and allocate resources efficiently.
In this context, risk is defined as a potential event or uncertainty assessed based on likelihood and potential negative impact on the organization’s strategic objectives. Only a structured assessment of these factors enables effective risk management.
Risk culture and governance
Effective risk management is inseparable from a strong risk culture. Risk culture reflects employees’ attitudes, competencies, and behavior in identifying and managing risks in daily operations. A mature risk culture encourages openness, accountability, and timely escalation of risks.
Risk governance is recommended to be based on the Three Lines of Defence model. The first line covers operational management, the second line provides risk oversight, and the third line ensures independent internal audit. This model supports clear accountability and a coherent approach to risk management.
Risk management system and standards
The risk management system should be developed in line with international standards and guidelines such as ISO 31000, ISO/IEC 27001, ISO/IEC 27005, and NIST SP 800-30. Applying these frameworks ensures a structured, repeatable, and continuously improving risk management process.
Organizations are encouraged to regularly review updates to these standards and adjust their risk management practices accordingly.
Key stages of the risk management process
An annual risk assessment should include the following stages:
- ● identification and classification of organizational assets;
- ● definition of risk appetite aligned with strategic objectives;
- ● identification of internal and external threats and vulnerabilities;
- ● threat analysis and determination of inherent risk;
- ● selection of appropriate risk treatment strategies;
- ● assessment of residual risk and development of risk treatment plans where necessary;
- ● continuous monitoring and reporting to management.
This process should be documented and reviewed at least once every 12 months or following significant organizational changes.
Risk appetite and control measures
Clearly defined risk appetite enables organizations to determine which risks are acceptable. Risks exceeding defined thresholds must be addressed through appropriate treatment strategies such as mitigation, transfer, avoidance, or justified acceptance.
Control measures may be preventive, detective, or corrective. Their effectiveness should be regularly assessed to ensure they remain relevant and contribute to organizational resilience.
Periodic assessment and continuous improvement
Risk assessment and risk management system review are continuous activities. Organizations are required to conduct and document annual risk assessments, submit required information to the competent authority, and retain risk assessment documentation for the prescribed period.
Ongoing monitoring, audit results, incident analysis, and organizational changes should be used to continuously improve the risk management system.
Summary
Annual risk assessment is not merely a compliance exercise but a practical tool that enables organizations to strengthen cybersecurity, ensure business continuity, and make risk-informed decisions. Only a consistent, documented, and regularly reviewed risk management process can ensure resilience in an evolving threat landscape.
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