Penetration Testing

Penetration Testing Is a Business Risk Exercise, Not Just a Technical One

> cat /blog/pentest-business-risk.md_

Peter Bassill 11 February 2025 9 min read
penetration testing business risk risk management executive reporting ROI

The technical trap.

Most penetration test reports read like they were written for machines. Pages of CVE identifiers, CVSS scores, port numbers, and technical jargon that — while accurate — tell a board of directors precisely nothing about what they actually need to know.

The result? The report gets filed. The findings get triaged by the security team. Some get fixed, some don't, and the business carries on without ever truly understanding the risk it was exposed to. The pen test becomes a compliance checkbox — an annual ritual that generates paper but not insight.

This is a failure of framing, not of testing. The technical findings are important — your engineers need them to fix the problems. But they are means, not ends. The real purpose of a penetration test is to answer a simple business question: what could an attacker do to us, and what would it cost?

The Question That Matters

A CVSS 9.8 vulnerability means nothing to a CFO. "An attacker could access your entire customer database and you'd face an estimated £2.1 million in regulatory fines, legal costs, and lost revenue" — that changes the conversation entirely.


What a pen test really is.

Strip away the technical mechanics and a penetration test is, at its core, a risk assessment conducted through simulation. It answers three fundamental questions that every organisation — from a 10-person startup to a FTSE 100 company — needs to understand.

Question What the Pen Test Reveals
What could go wrong? Which attack paths exist? What can an external attacker reach? What can a compromised insider access? Where do your defences fail?
How bad could it get? If an attacker exploits these paths, what data is exposed? Which systems are compromised? Can they move laterally? Can they escalate to domain admin? Can they exfiltrate data? Can they deploy ransomware?
What should we do about it? Which vulnerabilities carry the highest business risk? Where should remediation effort and budget be focused? What is the cost of fixing versus the cost of not fixing?

These are not technical questions. They are strategic questions — the same category of questions that boards ask about financial risk, operational risk, legal risk, and reputational risk. Penetration testing simply answers them through the lens of cyber security.


Translating findings into consequences.

A technical finding like "unauthenticated SQL injection on the customer portal" is meaningless to most business stakeholders. What they need to understand is the consequence — what an attacker could actually do with that vulnerability, and what it would mean for the organisation.

Good penetration testing bridges this gap. Every finding should be mapped not just to a CVSS score, but to a tangible business outcome.

Technical Finding Business Consequence
SQL injection on customer portal Full customer database extraction. Names, email addresses, hashed passwords, payment history. Triggers mandatory ICO notification under UK GDPR Article 33 (72-hour deadline). Potential fines up to 4% of annual global turnover.
Weak Active Directory password policy + Kerberoasting Domain compromise. Attacker gains Domain Admin privileges, giving them full control of every system on the network. Ransomware deployment becomes trivial. Business operations halt for days or weeks.
Insecure API endpoint exposing IDOR Access to any customer's account data. Attacker can enumerate and download records for every user. Regulatory, reputational, and contractual consequences — particularly if you hold data under NDA or contractual confidentiality.
Missing MFA on internet-facing admin panel Single-factor credential compromise = full system access. Phished or leaked credentials give an attacker immediate administrative control. No second factor to stop them.
Unpatched VPN appliance (known CVE) Remote network access without credentials. Attacker enters the internal network directly, bypassing the perimeter entirely. The starting point for lateral movement, data exfiltration, and ransomware.

When findings are presented this way, the conversation shifts from "should we patch this server?" to "can we afford not to?"


The economics of not testing.

Penetration testing costs money. That's a fact. But the question isn't "how much does a pen test cost?" — it's "how much does a breach cost, and how does that compare?"

Cost Category Typical Impact
Regulatory fines Up to 4% of annual global turnover under UK GDPR. The ICO fined British Airways £20 million and Marriott £18.4 million for data breaches caused by exploitable vulnerabilities.
Incident response Forensic investigation, legal counsel, PR crisis management, customer notification. A mid-size breach typically costs £100,000–500,000 in immediate response costs alone.
Business interruption Ransomware attacks take UK organisations offline for an average of 21 days. Calculate your daily revenue and multiply.
Reputational damage Harder to quantify but often the most severe long-term cost. Customer churn, lost contracts, damaged partnerships, and reduced market confidence.
Insurance impact Premiums rise after a breach. Some insurers deny claims if basic security measures (like those a pen test would have identified) weren't in place.
Legal costs Class action lawsuits, contractual liability, regulatory enforcement action. These can continue for years after the initial incident.

The average UK data breach now costs £3.4 million. A penetration test costs a fraction of a percent of that figure. Framed correctly, a pen test isn't an expense — it's the cheapest insurance policy you'll ever buy.

The Maths
avg_breach_cost = £3,400,000 # IBM Cost of a Data Breach Report, UK
avg_pentest_cost = £5,000–£25,000 # Depends on scope and complexity
ratio = 0.15%–0.74% # Pen test cost as % of breach cost
roi = significant # Even one prevented breach justifies years of testing

What the board actually needs to hear.

If your pen test report doesn't make it to the board, it's only doing half its job. Senior leadership don't need to understand the technical details — they need to understand the risk position and the decision points.

A good executive summary from a pen test should answer these questions in clear, business language:

Overall Risk Posture
How secure are we right now? Are we improving or deteriorating compared to the last assessment? How do we compare to industry peers?
Critical Attack Paths
What are the most dangerous ways an attacker could compromise us? What business assets are at the end of those paths? What would the impact be?
Prioritised Actions
What should we fix first? What is the estimated effort and cost? What risk reduction does each remediation deliver? What is the cost of inaction?
Investment Required
How much budget and resource is needed to address the findings? Is this a capital expense, an operational change, or a combination? What's the timeline?

Notice that none of these involve CVSS scores, CVE identifiers, or port numbers. The board needs business intelligence about cyber risk, presented with the same rigour and clarity as any other risk report.


Signs your pen test is too technical.

If any of the following sound familiar, your pen test might be providing technical output without business value:

Red Flag What It Means
The report is 200+ pages of scanner output with a logo on the cover You received a vulnerability scan, not a pen test. Scanner output is a starting point, not a deliverable.
Findings are listed by CVSS score with no business context A CVSS 9.8 on an isolated test server is less important than a CVSS 6.5 on your payment processing system. Without context, prioritisation is impossible.
The executive summary is just a graph of findings by severity A pie chart doesn't tell the board what the risk is. It tells them how many colours their pen tester used.
No one explains the findings to your leadership team A report without a debrief is like a medical test without a consultation. The value is in the interpretation, not just the data.
Remediation advice is generic ("apply vendor patches") Good remediation guidance is specific, prioritised, and accounts for your environment. "Apply patches" is not a remediation plan.
There's no narrative explaining how findings chain together Individual vulnerabilities are often low risk. The danger is in the chain: info disclosure → credential access → privilege escalation → domain compromise. If the report doesn't tell that story, the real risk is hidden.

Beyond the compliance checkbox.

Many organisations commission pen tests because a compliance framework requires it — PCI DSS Requirement 11.3, ISO 27001 Annex A, Cyber Essentials Plus, or contractual obligations from a client or insurer. There's nothing wrong with that. But compliance is the floor, not the ceiling.

A pen test conducted purely for compliance tends to be scoped as narrowly as possible, conducted as cheaply as possible, and filed as quickly as possible. The objective is to obtain the certificate or satisfy the auditor — not to actually understand risk.

A pen test conducted as a business risk exercise is scoped around what matters most to the organisation. The crown jewels. The customer data. The systems that, if compromised, would halt operations. The objective is genuine assurance — a clear-eyed understanding of where you're vulnerable and what to do about it.

Compliance-Driven Risk-Driven
Scope Narrowest possible scope that satisfies the requirement Scoped around critical business assets and realistic attack scenarios
Objective Pass the audit / satisfy the requirement Understand genuine risk exposure and prioritise remediation
Reporting Technical findings sufficient to satisfy the assessor Business-contextualised findings with attack narratives and impact analysis
Audience The compliance team and the auditor The board, senior leadership, and the engineering team
Outcome Certificate or audit sign-off Informed risk decisions, targeted investment, measurable security improvement
Value over time Diminishing — becomes a recurring cost with no strategic return Compounding — each test builds on the last, tracks improvement, and informs strategy

The best outcomes happen when compliance and risk-driven testing are combined: you satisfy the regulatory requirement and gain genuine business insight from the same engagement.


How to get more business value from your pen test.

If you're commissioning a pen test — or evaluating one you've already received — here are practical steps to ensure it delivers business value, not just technical data.

Scope Around Business Risk
Start with what matters most: customer data, payment systems, intellectual property, operational continuity. Let business risk drive the scope, not the cheapest possible quote.
Involve Leadership Early
Brief the board or senior leadership before the test. Set expectations about what it will cover, what the outputs will be, and how findings will be presented. This turns the pen test from a technical exercise into a strategic initiative.
Demand a Proper Executive Summary
Not a pie chart — a narrative. What are the critical risks? What could an attacker actually achieve? What's the recommended course of action? This should be readable by anyone in the organisation.
Insist on Attack Narratives
Don't accept isolated findings. Ask your tester to demonstrate how vulnerabilities chain together into realistic attack paths. This is where the real business risk lives.
Get a Face-to-Face Debrief
A report is a document. A debrief is a conversation. Insist on a walkthrough with both your technical team and your leadership. Questions will be asked that the report alone can't answer.
Track Trends Over Time
One pen test is a snapshot. Multiple tests, compared year on year, show whether your security posture is improving or deteriorating. This is the data the board needs to evaluate ROI on security investment.

The bottom line.

Penetration testing is not a technical exercise that happens to have business implications. It is a business exercise — one that uses technical simulation to answer strategic questions about risk, resilience, and investment.

The most valuable pen test you'll ever commission is the one that changes how your organisation thinks about cyber risk. Not because it found a critical CVE, but because it showed the board — in plain language — what an attacker could do, what it would cost, and what to do about it.

If your pen test reports are gathering dust in a SharePoint folder, it's not because the testing was bad. It's because the framing was wrong. Fix the framing, and the value follows.


Pen tests that speak your board's language.

Our reports are written for two audiences: engineers who need to fix the problems, and leaders who need to understand the risk. Every engagement includes an executive summary, attack narratives, and a face-to-face debrief.