What is the difference between risk and vulnerability?

The distinction between risk and vulnerability is critical in understanding cyber risk management. Risk is fundamentally about the potential consequences of a threat exploiting a vulnerability. It encompasses the likelihood of an adverse event occurring and the impact it would have on an organization. This impact can vary and may involve financial losses, reputational damage, or operational disruptions, among other things.

On the other hand, vulnerability specifically identifies weaknesses or flaws within a system, process, or policy that could be exploited by threats. Vulnerabilities are inherent in systems, whether due to outdated software, insufficient security protocols, or human error. The key aspect here is that vulnerabilities do not signify an immediate risk until they are paired with a threat capable of exploiting them.

By recognizing that risk deals with potential impacts while vulnerability pertains to the weaknesses that could lead to those impacts, one can better assess an organization's security posture and implement appropriate risk management strategies.