Why a Risk Register Matters for Small Businesses
Learn why maintaining a risk register is essential for small businesses. Discover how proactive risk management protects your company and satisfies auditors.
What is a Risk Register?
A risk register is a centralized document that identifies, assesses, and tracks potential threats to your organization. Think of it as your company's security radar — it helps you see dangers before they become disasters.
For small businesses, a risk register transforms reactive firefighting into proactive risk management.
Why Small Businesses Need One
1. Compliance Requirements
Most security frameworks require documented risk management:
- SOC 2 — Risk assessment is a core Trust Services Criteria requirement
- ISO 27001 — Clause 6.1 mandates a risk assessment process
- HIPAA — Required for covered entities and business associates
- GDPR — Data Protection Impact Assessments for high-risk processing
Without a risk register, you'll fail these audits.
2. Limited Resources, Maximum Impact
Small businesses can't afford to address every potential risk. A risk register helps you:
- Prioritize based on likelihood and impact
- Allocate resources to the highest risks first
- Justify decisions to stakeholders and auditors
- Avoid wasted effort on low-priority issues
3. Insurance and Contracts
Cyber insurance providers increasingly ask about risk management practices. Enterprise customers often require vendors to demonstrate risk assessment capabilities.
A well-maintained risk register shows you take security seriously.
Essential Risk Register Components
| Field | Purpose |
|---|---|
| Risk ID | Unique identifier for tracking |
| Description | Clear explanation of the threat |
| Category | Type of risk (technical, operational, etc.) |
| Likelihood | Probability of occurrence (1-5 scale) |
| Impact | Severity if it occurs (1-5 scale) |
| Risk Score | Likelihood × Impact |
| Owner | Person responsible for management |
| Mitigation | Actions to reduce the risk |
| Status | Current state (open, mitigated, accepted) |
| Review Date | When to reassess |
Common Risks for Small Businesses
Start with these typical categories:
Technical Risks
- Ransomware and malware attacks
- Data breaches from vulnerabilities
- Cloud misconfiguration
- Third-party software risks
Operational Risks
- Key person dependencies
- Insufficient backup/recovery
- Inadequate access controls
- Vendor failures
Compliance Risks
- Regulatory non-compliance
- Contractual obligations
- Data privacy violations
- Audit failures
Building Your First Risk Register
Step 1: Identify Risks
Brainstorm potential threats with your team. Consider past incidents, industry trends, and regulatory requirements.
Step 2: Assess Each Risk
Rate likelihood and impact on a consistent scale. Multiply to get a risk score.
Step 3: Prioritize
Focus on high-score risks first. Use a risk matrix to visualize priorities.
Step 4: Assign Owners
Every risk needs a person responsible for managing it.
Step 5: Define Mitigations
Document what you'll do to reduce each risk. Accept some risks if mitigation isn't cost-effective.
Step 6: Review Regularly
Risks change. Review quarterly at minimum, or when significant changes occur.
How CyberPolicify Helps
Building a risk register from scratch is time-consuming. CyberPolicify accelerates the process:
- AI-suggested risks based on your industry and tech stack
- Pre-built templates with common risk categories
- Automated scoring and prioritization
- Integration with policies and controls
- Audit-ready exports for compliance evidence
Start managing risks intelligently today.
Create a risk register you can defend
Start with a proven structure, assign owners, and track mitigation—without building a GRC program from scratch.