The Cybersecurity Control Playbook

Appendix CCreating and Using a Cybersecurity Risk Taxonomy

A risk taxonomy provides a structured way to classify and organize the risks that could impact your organization's cybersecurity. By grouping risks into categories and subcategories, a risk taxonomy helps to standardize language, streamline risk assessments, and facilitate communication across departments. It is a critical tool for managing risks more systematically and efficiently, clarifying how risks are categorized and addressed across the organization.

How to Build a Risk Taxonomy

1. Identify Risk Domains: Start by defining broad risk domains that cover your organization's key cybersecurity risk areas. These domains may include categories such as Access Control, Data Security, Network Security, and Third‐Party Risks. Each domain represents a fundamental area where cybersecurity threats and vulnerabilities can occur.
2. Break Down Risk Domains into Subcategories: Once you have your top‐level domains, break them down further into specific subcategories that describe more granular aspects of those risks. For example, under Data Security, subcategories might include encryption, data leakage, and unauthorized database access.
3. Define Specific Risk Events: For each subcategory, define specific risk events that could happen within your organization. This will help you to develop more precise risk management strategies and make the taxonomy more actionable. For instance, within the “Unauthorized Access to Data subcategory,” ...