The Essential Guide to Conducting a Threat Risk Assessment (TRA)

The ability to identify and manage risks is the foundation of any resilient business. In today’s fast-paced and unpredictable world, businesses face a wide range of threats—from natural disasters to cyberattacks. The question isn’t if these threats will occur, but when. That’s why a Threat Risk Assessment (TRA) is essential for building resilience and protecting what matters most.

This guide will walk you through the TRA process, breaking it down into simple steps to help you identify, assess, and address potential risks to your business. Whether you’re new to Business Continuity Planning (BCP) or looking to refine your approach, this is your starting point for a safer, more secure future.

What is a Threat Risk Assessment (TRA)?

At its core, a TRA is a process that identifies potential threats to your organization, evaluates the risks they pose, and helps you prioritize them based on their likelihood and impact. With a clear understanding of your vulnerabilities, you can craft targeted strategies to mitigate them.

For a deeper understanding of how TRA fits into the Business Continuity Planning (BCP) process, check out the 5 Phases of BCP here.

Why is a TRA Important?

Imagine trying to navigate a storm without a map or a compass. A TRA serves as both, guiding your organization through uncertain times. Here’s why it’s critical:

• Identifies potential disruptions before they occur.
• Highlights vulnerabilities that need immediate attention.
• Helps allocate resources effectively to address the most pressing risks.

Ultimately, a TRA empowers your business to stay operational, no matter the challenges.

Step-by-Step Guide to Conducting a TRA

1. Identify Critical Assets

Your first step is to identify the core elements that keep your business running. These could include:

• Building(s) or warehouse(s)
• Key personnel or departments
• Customer data and intellectual property
• 3rd party vendors/suppliers for either sourcing raw product or sending finished product.

The four core elements listed above are inspired by our "No Building, No People, No Systems, No Suppliers" model: instead of focusing on all of the possible ways an incident might occur, try thinking about what the incident will actually affect! Access the white paper here.

2. Consider Potential Threats

Think about every possible threat that could disrupt your operations:

• Natural threats: Earthquakes, floods, wildfires.
• Technological threats: System outages, cyberattacks.
• Human threats: Theft, insider sabotage, or even accidental errors.

This step in the TRA process often appears quite daunting. Trying to identify all potential threats to your business can make everything seem like a threat, leading to more anxiety than preparedness.

This is why our SHIELD software solution is equipped with an integrated TRA tool designed to simplify and streamline this critical phase. Think of this tool as your TRA template!

3. Evaluate Vulnerabilities

Every organization has weak points. What are yours? For instance:

• An over-reliance on outdated systems.
• Lack of training for staff on security protocols.
• Limited backup power sources.

4. Assess Likelihood and Impact

This is where you prioritize your threats so you can focus on high-likelihood, high-impact threats first. For each identified threat:

• How likely is it to occur?
  • NOTE: A Zombie apocalypse isn't a likely threat.
• What would the financial, operational, and reputational impact be if it did?

Unsure how to determine threat priority and impact? SHIELD's integrated TRA tool will create a TRA report for you, automatically prioritizing threats based on their likelihood, severity, and warning needed.

5. Document and Monitor

A TRA isn’t a one-and-done task. Your TRA should be evaluated and updated when there has either been a relocation of your critical business functions or large operational changes to your business. As these don't usually happen with any regularity, when they do, make sure you are ready to pull out your TRA and re-evaluate.

Conclusion

A Threat Risk Assessment (TRA) is the foundation of your Business Continuity Plan (BCP). While it might seem like a waste of time, it’s your organization’s shield against uncertainty. By following these simple steps you can protect your business from even the most unexpected challenges.

Start your TRA today and give your BCP a fighting chance to be successful solution to your operational resilience!