A Guide to Creating an Updated Inventory of Applications and Performing Risk Ratings

Introduction

Understanding the full scope of an organization’s application landscape is critical for effective security management. Without an up-to-date inventory, organizations risk security blind spots, compliance issues, and inefficiencies in managing vulnerabilities. Additionally, performing a risk rating of applications helps prioritize security efforts and allocate resources effectively.

This guide walks through the steps to create an updated inventory of applications and implement a structured risk rating system to enhance security posture and compliance.

Why an Updated Application Inventory is Essential

An up-to-date application inventory enables organizations to:

• Identify Security Risks – Discover outdated, vulnerable, or unauthorized applications.

• Ensure Compliance – Maintain regulatory compliance by tracking applications handling sensitive data.

• Enhance Asset Management – Improve software lifecycle management and licensing oversight.

• Enable Efficient Incident Response – Quickly assess and mitigate security incidents.

Steps to Create an Updated Inventory of Applications

1. Identify All Applications Across the Organization

Organizations often have multiple types of applications:

• Internally developed applications – Web, mobile, desktop, or cloud-based solutions.

• Third-party applications – Vendor-provided software used for business operations.

• Open-source software – Libraries, frameworks, and tools integrated into internal projects.

• Shadow IT applications – Software used without official IT approval.

To gather application data, consider:

• Scanning the IT environment – Use asset discovery tools to detect installed applications.

• Surveying business units – Ask teams about applications they rely on.

• Reviewing cloud and SaaS subscriptions – Audit active cloud services and third-party integrations.

2. Categorize Applications by Type and Function

Once all applications are identified, categorize them based on:

• Business function (e.g., HR, finance, customer service, development tools)

• Technology stack (e.g., Java, .NET, Python, Node.js)

• Deployment model (e.g., on-premises, cloud, hybrid)

• Data sensitivity (e.g., personal data, financial data, confidential business information)

3. Maintain Application Metadata

For each application, record:

• Application Name – Unique identifier for tracking.

• Owner/Responsible Team – Business or IT team responsible.

• Hosting Environment – On-prem, cloud, hybrid.

• Last Updated – Date of last security patch or update.

• Dependencies – APIs, third-party integrations.

• Compliance Requirements – GDPR, HIPAA, PCI DSS, etc.

Using a centralized inventory system such as a Configuration Management Database (CMDB) or an IT asset management tool helps keep data organized and accessible.

How to Perform a Risk Rating of Applications

After creating an updated inventory, performing a risk rating allows organizations to prioritize security efforts. Risk rating should consider factors like data sensitivity, exposure, and security posture.

1. Define Risk Criteria

Develop a risk assessment framework based on:

• Data Sensitivity – Does the application handle personally identifiable information (PII), payment data, or intellectual property?

• Business Impact – If compromised, how would it affect operations, revenue, or reputation?

• Security Vulnerabilities – Are known vulnerabilities present in the application or dependencies?

• Exposure – Is the application internet-facing, internally accessible, or restricted?

• Compliance Requirements – Does it fall under regulatory mandates that require enhanced security controls?

2. Assign Risk Scores

Use a structured scoring system to rate each factor:

3. Calculate Overall Risk Score

Sum the risk factor scores to get an overall risk rating:

• Low Risk (1-5 points) – Minimal security concerns, requires standard security practices.

• Medium Risk (6-10 points) – Needs regular security monitoring and updates.

• High Risk (11-15 points) – Requires strict security controls, continuous monitoring, and rapid remediation of vulnerabilities.

4. Implement Continuous Risk Monitoring

Risk ratings should be continuously updated based on:

• Security Assessments – Regular vulnerability scans and penetration testing.

• Application Updates – Changes in software architecture or functionality.

• Threat Intelligence Feeds – Emerging threats relevant to applications.

• Compliance Audits – Ensuring ongoing adherence to regulatory requirements.

Tools for Application Inventory and Risk Management

Several tools can streamline application inventory management and risk rating:

• IT Asset Management (ITAM) Tools: ServiceNow, Lansweeper, SolarWinds.

• Application Security Testing (AST) Tools: SAST, DAST, IAST tools like Veracode, Checkmarx, and SonarQube.

• Vulnerability Management Platforms: Qualys, Nessus, Rapid7.

• Cloud Security Posture Management (CSPM): AWS Security Hub, Azure Security Center.

Conclusion

Creating an updated inventory of applications and performing risk ratings is crucial for maintaining a strong security posture. By following a structured approach to identifying, categorizing, and assessing risk levels of applications, organizations can:

• Enhance visibility into their application landscape.

• Prioritize security efforts based on risk severity.

• Improve regulatory compliance and risk management practices.

Regular updates and continuous monitoring ensure that the application inventory remains accurate and that security teams stay ahead of emerging threats. Organizations that implement a structured AppSec inventory and risk rating system will be better equipped to protect their applications and sensitive data from evolving cyber threats.