Explainers & Guides
Understanding the NIST Cybersecurity Framework
Traditional risk rating matrices are outdated. Static, spreadsheet-driven, and often based on self-reported data, they fail to capture the dynamic, interconnected nature of today’s cyber threats. As organisations scale their digital ecosystems, relying on more and more third-party vendors with their own intricate supply chains, a new approach is needed.
Risk Ledger’s collaborative platform enables organisations to move beyond the limitations of a traditional risk rating matrix. By combining real-time intelligence, shared insights, and contextual risk scoring, teams can build scalable, responsive cyber security programmes grounded in real-world data.
A risk rating matrix is a visual framework which helps cyber security professionals evaluate and prioritise cyber security risks according to two key factors: the likelihood of an event and its potential impact. It allows organisations to categorise vendor or third-party risks, inform treatment plans, and meet compliance requirements.
Supply chain security and cyber risk management professionals use these matrices to:
Historically, these tools rely on point-in-time assessments, manual scoring, and fixed criteria. While they work for rudimentary prioritisation, they fail to reflect and be impactful in the real-world complexity of today’s digital supply chains.
A significant limitation of traditional risk rating matrices is that they tend to oversimplify. In particular, they reduce nuanced vendor risk profiles into generic scores, which lack the contextual considerations that allow accurate prioritisation. Common pitfalls include:
As supply chains grow in scale and complexity, these static models fall short of the actionable insights needed to protect business-critical operations.
A modern risk rating matrix must evolve in step with the threat landscape, meaning it must incorporate live data, behavioural signals, and shared intelligence from a network of peers.
Platforms like Risk Ledger enable security teams to contextualise vendor risks using:
These inputs transform the risk rating matrix into a living model. A fluid tool that can reflect both a vendor's internal controls and how that vendor's behaviour and exposure change over time.
Not all risks are created equal. A vulnerability that might be low risk in one vendor could be critical in another, depending on:
That’s where context comes in. By layering risk signals with vendor criticality and industry benchmarks, Risk Ledger helps teams apply cyber and technology risk management in a way that is both scalable and precise.
Many risk ratings rely on questionnaires or annual assessments. As a result, vendors often appear “green” even when risk conditions have changed.
Score inflation occurs when vendors look safer on paper than they are in reality, typically due to:
Risk Ledger uses inside-out and outside-in continuous monitoring, as well as intelligence-sharing to further validate inputs, which mitigates against vendor score inflation. Rather than trusting static claims, the platform detects changes in security postures and flags emerging risks in real time.
A modern matrix combines automation, context, and live signals to deliver risk scores that are both actionable and scalable. Key features include:
With Risk Ledger, organisations can operationalise this model without the overhead of spreadsheet management or siloed reviews.
Dynamic Risk Weighting
Adjusts score calculations based on live data inputs and risk criticality.
Cross-Vendor Intelligence Sharing
Leverages sector-wide data to benchmark vendor posture and identify hidden dependencies.
Real-Time Threat Signals
Incorporates signals from site scanners, breach alerts, and security telemetry.
Continuous Vendor Monitoring
Tracks changes to a vendor’s risk profile over time, flagging new behaviours or vulnerabilities.
During procurement or onboarding, a contextual risk rating matrix enables teams to prioritise assessments based on key factors:
By doing so, the organisation significantly strengthens early-stage security reviews.
Post-onboarding, continuous monitoring ensures vendor risk scores evolve alongside their security posture. Security teams can quickly identify and respond to changes.
Risk Ledger helps cyber security and procurement teams integrate dynamic risk scoring into everyday workflows. By replacing spreadsheets with automation, teams can:
The platform enables seamless cyber risk management and vendor risk scoring at scale.
A global manufacturing firm onboarded 300 new suppliers over six months. Initially using a spreadsheet-based risk matrix, their team struggled to prioritise assessments and overestimated many vendors as “low risk.”
After implementing Risk Ledger, they began receiving continuous posture updates and sector alerts. Within weeks, they identified 27 vendors with exposed cloud storage and 9 with outdated security certifications.
By automating risk scoring, they reduced reassessment time by 45% and directed their team toward the most impactful threats.
Risk Ledger helps organisations move from static matrices to scalable cyber risk management.
With automated scoring, contextual risk intelligence, and continuous monitoring, teams can eliminate spreadsheet fatigue and get ahead of risk before it escalates.
Explore how Risk Ledger transforms vendor risk scoring into a dynamic, data-led process.
The five standard risk levels are: Very Low, Low, Medium, High, and Critical. These are typically determined by multiplying likelihood and impact. While this model is useful, it can be rigid without factoring in context like vendor criticality or live threat activity.
A 3x3 risk matrix plots Likelihood (Low/Medium/High) against Impact (Low/Medium/High), resulting in nine possible risk outcomes. It’s a simple model, but it may not capture complex, evolving vendor risks. Platforms like Risk Ledger offer more granular, adaptive matrices for deeper insights.
These represent tiers of severity:
Risk Ledger supports prioritising these levels using real-time signals and vendor behaviour monitoring.
Typical criteria include:
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