Module 1: Threat identification and risk analysis(3/4)

Consequence and likelihood scoring

35 min4 min readRef: IEC 62443-3-2 §5.4

title: "Consequence and likelihood scoring" duration: "35 min"

From scenarios to numbers

You now have a set of threat × vulnerability pairs for each zone. This lesson teaches you how to assign consequence and likelihood scores — the two dimensions of risk.

Formula

Risk = Consequence × Likelihood

Consequence scoring

Consequence measures the impact if the threat scenario is fully realised. IEC 62443-3-2 recommends scoring across four impact categories:

CategoryWhat it measuresExample (water treatment)
SafetyHarm to human life or healthToxic chlorine release — potential fatalities
EnvironmentalHarm to the natural environmentUntreated sewage discharge into a river
FinancialDirect and indirect monetary lossEquipment damage, regulatory fines, lost production
OperationalLoss of essential function or reputationLoss of water supply for 50,000 people

The consequence scale

Use a 5-level scale. The highest category determines the overall consequence score:

LevelLabelSafetyFinancialOperational
5CatastrophicMultiple fatalities> $10MLoss of critical infrastructure for > 7 days
4MajorSingle fatality or permanent injury$1M–$10MLoss of essential service for 1–7 days
3SeriousHospitalisation$100K–$1MSignificant disruption for hours
2MinorFirst-aid injury$10K–$100KMinor disruption, quickly recoverable
1NegligibleNo injury< $10KCosmetic or administrative impact

Key takeaway

Use the worst case

If a scenario scores 2 on financial but 4 on safety, the overall consequence is 4. Safety always dominates.

Example: reference plant Zone 1

Scenario: Attacker modifies chemical dosing PLC setpoints via unauthenticated S7comm.

  • Safety: Overdose of chlorine could cause respiratory harm — Level 3 (Serious).
  • Environmental: Excess chlorine discharged to waterway — Level 3.
  • Financial: Regulatory fine, remediation — Level 2.
  • Operational: Boil-water advisory, plant shutdown — Level 3.
  • Overall consequence: 3.

Likelihood scoring

Likelihood measures how probable it is that the scenario occurs within the assessment period (typically one year).

Factors that influence likelihood

FactorIncreases likelihoodDecreases likelihood
Threat-source motivationWater/energy sector (strategic targets)Low-profile, non-critical facility
Threat-source capabilityNation-state APT, ransomware-as-a-serviceScript kiddie, low-capability hacktivist
Vulnerability exposureInternet-facing, default credentialsAir-gapped, MFA, protocol-aware FW
Existing controlsNone or weakDefence in depth, monitoring, patching
Attack complexitySimple (one step, off-the-shelf tools)Complex (multi-stage, custom tooling)

The likelihood scale

LevelLabelDescription
5Almost certainExpected to occur multiple times per year
4LikelyExpected to occur at least once per year
3PossibleCould occur within the assessment period
2UnlikelyCould occur but not expected
1RareRequires extraordinary circumstances

Example: reference plant Zone 1

Scenario: Cybercriminal reaches Zone 1 via compromised engineering conduit.

  • Threat-source capability: moderate (ransomware crew with initial-access broker).
  • Vulnerability exposure: S7comm unauthenticated, engineering conduit time-gated but bidirectional.
  • Existing controls: firewall (not protocol-aware), no ICS monitoring.
  • Likelihood: 3 (Possible).

The risk matrix

Combine consequence and likelihood in a 5×5 matrix:

Negligible (1)Minor (2)Serious (3)Major (4)Catastrophic (5)
Almost certain (5)MediumHighCriticalCriticalCritical
Likely (4)LowMediumHighCriticalCritical
Possible (3)LowMediumHighHighCritical
Unlikely (2)LowLowMediumMediumHigh
Rare (1)LowLowLowMediumMedium

Example: Zone 1 risk score

Consequence 3 × Likelihood 3 = High risk.

This zone requires SL-T ≥ 2 and targeted remediation of the unauthenticated S7comm conduit.

Analogy

The risk matrix is a triage tool, not a precision instrument. Its job is to separate the critical from the negligible so you allocate resources to the right zones first. Do not over-engineer the scores — if two assessors disagree by ±1, the matrix still produces the same priority band.

Key Takeaways

  1. Consequence is scored across four categories (safety, environmental, financial, operational); the highest category wins.
  2. Likelihood is scored based on threat-source capability, vulnerability exposure, existing controls, and attack complexity.
  3. Risk = Consequence × Likelihood, visualised in a 5×5 matrix.
  4. The risk score determines the priority band (Low / Medium / High / Critical) and drives SL-T assignment.
  5. The matrix is a triage tool — do not over-engineer the precision of individual scores.

Knowledge Check

3 questions — test your understanding before moving on.

  1. Q1.When scoring consequence, if a scenario scores 2 on financial impact but 4 on safety impact, what is the overall consequence score?

    • 2 — use the lowest score.
    • 3 — use the average.
    • 4 — use the highest score; safety dominates.
    • 6 — add the scores together.

    The overall consequence score is the highest across all four impact categories (safety, environmental, financial, operational). Safety always dominates because the IEC 62443 framework prioritises availability and human safety.

  2. Q2.What does the risk matrix combine to produce a risk rating?

    • Threat source capability and vulnerability count.
    • Consequence score (1–5) and likelihood score (1–5).
    • SL-T and SL-C vectors.
    • Number of zones and number of conduits.

    Risk = Consequence × Likelihood. The 5×5 risk matrix maps the intersection of a consequence score (1–5) and a likelihood score (1–5) to a risk band: Low, Medium, High, or Critical.

  3. Q3.What is the purpose of the risk matrix?

    • To calculate the exact dollar cost of each risk.
    • To serve as a triage tool that separates critical risks from negligible ones so resources are allocated correctly.
    • To determine the number of firewalls needed.
    • To assign CVE severity scores.

    The risk matrix is a triage tool, not a precision instrument. Its job is to separate risks into priority bands (Low/Medium/High/Critical) so the organisation allocates remediation resources to the right zones first.