Risk Assessment & Gap Analysis for MSPs 

 

With ever evolving cybersecurity threats, ensuring the security of your infrastructure and that of your clients is paramount. This requires a proactive approach that goes beyond basic security measures. A crucial component of this approach is conducting thorough risk assessments and compliance gap analyses. 

 

Why are Risk Assessments and Gap Analyses Critical for MSPs? 

​

• Client Trust and Retention: Clients increasingly prioritize cybersecurity. Demonstrating a robust security posture through regular assessments builds trust and enhances client retention. 

• Proactive Threat Mitigation: Identifying and addressing vulnerabilities before they are exploited by attackers minimizes the risk of data breaches and service disruptions. 

• Compliance with Regulations: Many industries are subject to stringent regulations (e.g., PIPEDA, GDPR, PCI DSS). MSPs must ensure their own operations and those of their clients comply with these regulations to avoid hefty fines and legal repercussions. 

• Improved Service Delivery: By identifying and addressing security weaknesses, MSPs can enhance the quality and reliability of their services, leading to greater customer satisfaction. 

• Competitive Advantage: In a competitive market, a strong security posture differentiates MSPs and provides a significant competitive advantage. 

 

Key Steps in Conducting a Risk Assessment: 

​

• Identify Assets: 

  • Internal Assets: Servers, workstations, network devices, applications, data, intellectual property, employees. 

  • Client Assets: Data stored on client systems, applications used by clients, client networks. 

• Threat Identification: 

  • Internal Threats: Malicious insiders, accidental data breaches, human error. 

  • External Threats: Malware attacks (ransomware, phishing), DDoS attacks, social engineering, supply chain attacks. 

• Vulnerability Assessment: 

  • Technical Vulnerabilities: Weak passwords, outdated software, misconfigurations, network vulnerabilities. 

  • Operational Vulnerabilities: Lack of security policies, inadequate training, insufficient incident response procedures. 

• Impact Analysis: 

  • Determine the potential impact of each identified threat and vulnerability. 

  • Consider the potential consequences, such as data loss, financial loss, reputational damage, and business disruption. 

• Risk Prioritization: 

  • Prioritize risks based on their likelihood and impact. 

  • Focus on addressing the highest-priority risks first. 

 

Popular Risk Assessment Methodologies: 

 

• Failure Mode and Effects Analysis (FMEA): This structured approach systematically evaluates potential failures in a system or process. 

  • Focus: Identifies potential failure modes, analyzes their potential effects, and determines the severity, occurrence, and detection of each failure. 

  • MSP Application: FMEA can be used to assess the potential impact of failures in key MSP services, such as data backup and recovery, network monitoring, and security incident response. 
     

• Operationally Critical Threat, Asset, and Vulnerability Evaluation (OCTAVE): This collaborative approach involves a team of stakeholders to identify and prioritize critical threats and vulnerabilities. 

  • Focus: Emphasizes a holistic view of organizational risk, considering both technical and human factors. 

  • MSP Application: OCTAVE can be valuable for conducting comprehensive risk assessments that encompass all aspects of the MSP's operations, including client environments, internal processes, and third-party relationships. 
     

• CAN/DGSI 104: This standard is part of the recognized Canadian cybersecurity program. It aims to enhance cyber security measures for small and medium businesses (SMBs), ensuring they are better equipped to handle evolving cyber threats. The standard provides a framework for cybersecurity controls for small and medium-sized organizations, aligning with the principles of the CyberSecure Canada program. These regulations emphasize risk management frameworks, data protection measures, and the importance of ensuring third-party vendor security.   

  • Focus: Helps organizations manage cybersecurity risk on a cyclical basis, encompassing identify, protect, detect, respond, and recover. 

  • MSP Application: The CAN/DGSI 104 Cybersecurity Framework offers a structured approach for MSPs to develop and implement a comprehensive cybersecurity program that aligns with industry best practices. 

 

Conducting a Compliance Gap Analysis: 

 

• Determine Applicable Regulations: 

  • Identify all relevant regulations and standards that apply to the MSP's business and its clients. If you have clients internationally, additional regulations may apply. 

  • Examples include: CAN/DGSI 104 (small medium business (SMB) - Canada), HIPAA (healthcare - USA), GDPR (data privacy - Europe), PCI DSS (payment card industry - International), NIST Cybersecurity Framework. 

• Document Current Practices: 

  • Gather information on existing security controls, policies, and procedures. 

  • This may involve conducting interviews, reviewing documentation, and analyzing system configurations. 

• Compare with Requirements: 

  • Compare current practices with the specific requirements of the applicable regulations. 

  • Identify any gaps or deficiencies in compliance. 

• Develop a Remediation Plan: 

  • Create a plan to address identified gaps. 

  • This may involve implementing new security controls, updating existing policies, and providing employee training. 

 

Tools and Technologies for Risk Assessment and Compliance: 

 

• Vulnerability Scanners: Identify and assess vulnerabilities in systems and applications. 

• Security Information and Event Management (SIEM) Systems: Collect and analyze security logs to detect and respond to threats. 

• Threat Intelligence Platforms: Provide insights into emerging threats and help organizations stay informed about the latest attack vectors. 

• Compliance Automation Tools: Automate compliance checks and generate reports. 

 

Best Practices for MSPs: 

 

• Regular Risk Assessments: Conduct risk assessments on a regular basis (e.g., quarterly or annually) to stay ahead of evolving threats. 

• Client-Specific Assessments: Conduct risk assessments tailored to the specific needs and requirements of each client. 

• Employee Training: Provide ongoing security awareness training to employees to minimize the risk of human error. 

• Incident Response Plan: Develop and regularly test an incident response plan to minimize the impact of security breaches. 

• Third-Party Risk Management: Conduct due diligence on third-party vendors to ensure they have adequate security controls in place. 

• Continuous Monitoring: Continuously monitor systems and networks for suspicious activity. 

 

Risk assessment and compliance gap analysis are essential for MSPs to protect their clients, maintain a competitive edge, and ensure business continuity. By proactively identifying and addressing security vulnerabilities, MSPs can build trust with clients, minimize the impact of cyberattacks, and navigate the complexities of the ever-changing regulatory landscape. 

 

Disclaimer: This article is for informational purposes only and should not be construed as legal advice. For professional cybersecurity advice, please contact your 123 Cyber analyst.

​

---

​

This training series is based on the CAN/DGSI 104 NATIONAL STANDARD OF CANADA Baseline cyber security controls for small and medium sized organizations (typically less than 500 employees), the Canadian Centre for Cyber Security controls and the National Institute of Standards and Technology (NIST). 

 

This tutorial is a guideline for best practices, but you are encouraged to review your company's policies to ensure you are following your organization's procedures. 

​

---

​

If you are interested in becoming CAN/DGSI 104 compliant, or would like to join our affiliate program:

​

​