Risk Management Part 1

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Course
Time
5 hours 25 minutes
Difficulty
Intermediate
CEU/CPE
6
Video Transcription
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>> Hello again, and welcome to
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the HCISPP Certification course with Cybrary,
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Enterprise Risk Management Part 1.
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I'm your instructor, Schlaine Hutchins.
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Today, we're going to discuss assets, exposure,
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likelihood, and impact, threat,
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vulnerability, and risk.
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Organizations need to identify
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their information assets in order to
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categorize them based on criticality,
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the business operations, and to
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determine the threats to the confidentiality,
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integrity, and availability of each asset.
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Similar to risk analysis,
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information valuation methods may
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be descriptive or metric.
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Descriptive methods include the creation,
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and dissemination, and
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data collection from checklists and surveys.
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A metric or statistical measures may provide
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a more objective view of information valuation.
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Tangible assets are generally
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those that have a physical presence.
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These assets are typically valued based on
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the original cost of the assets minus any depreciation.
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For a risk assessment purpose,
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the information security professional needs
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to be aware of the original cost,
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but more importantly, the replacement cost.
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As suppliers and vendors come
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into the market and leave the market,
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the cost of replacing a specific appliance, server,
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or even type of lock may change due to supply and demand.
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Additionally, assets originally depreciated
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making the value,
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if the supply is less than the demand.
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Certain assets may become outdated and new assets may be
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required to replace
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the functionality or utility provided.
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Intangible assets are not physical, such as trademarks,
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copyrights, patents, business processes,
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brand recognition, and intellectual property.
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A definite intangible asset is
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an intangible asset with
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a definite expiration period, such as a patent.
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Once the patent expires,
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it no longer has value.
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Conversely, an indefinite intangible asset is with
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an indefinite expiration period
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like an organization's brand.
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The brand is expected to be maintained and
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preserved into the foreseeable future.
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To approximate the value of an intangible asset,
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the following methods are generally acceptable.
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Cost. The cost to create
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the asset and the cost to replace it.
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Capitalization of historic profits.
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Meaning, if getting a patent,
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creating a brand,
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or developing a new process
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directly led to increased profits,
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those profits can be
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considered part of the overall value of the asset.
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Cost avoidance or savings.
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If acquiring the trademark of a product or
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service allowed an organization
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to avoid paying royalties,
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those savings can be considered part of the asset value.
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Health care professionals should seek the aid of
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a financial expert when attempting to
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determine the intangible value of an asset.
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Let's talk about exposure.
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Mitre, a US non-profit organization that
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maintains the common vulnerabilities
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and exposures or CVEs.
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It's a dictionary of names for vulnerabilities
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and exposures identified in the industry.
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Mitre defines an exposure as
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an information security exposure to
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a system configuration issue or a mistake in
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software that allows access to
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information or capabilities that can be
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used by a hacker as
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a stepping stone into a system or network.
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NIST 800-30 Revision 1 describes likelihood as
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a weighted risk factor on analysis of
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the probability that a given threat is
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capable of exploiting a given vulnerability.
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Likelihood is generally viewed as
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an adversarial and non-adversarial.
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When considering the adversarial view,
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it's necessary to consider
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the adversaries capabilities, intent, and target.
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For the non-adversarial view,
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it's common to consider historical data.
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Once the value has been determined for likelihood,
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it is then associated with
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the impact so as to properly make a risk determination.
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NIST 800-30 Revision 1
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describes impact as the magnitude of
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harm that can be expected to result from
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the consequences of an unauthorized disclosure,
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modification, or destruction of information,
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or loss of information,
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or information systems availability.
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When a health organization considers impact,
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it needs to also consider
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other entities outside of itself.
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For example, a health organization
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may have data that belongs to a specific patient.
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Therefore, that patient needs to be considered along
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with any other organizational entity
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that may be impacted.
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In addition, each organization needs to explicitly define
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definitions for impact that may
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include anything such as loss of life,
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loss of money, or loss of reputation within their scale.
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Impact is considered in the same manner as likelihood and
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given a value that will be used in computing risk.
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It is also important to note that within the industry,
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impact may be called consequences in some taxonomies.
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Threats are predefined topical areas
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that can put an organization at risk.
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Most risk assessment methodologies have
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a threat table that is utilized to determine
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if a system given unique characteristics would
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actually have exposure or is vulnerable to a threat.
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For instance, a hurricane is an environmental threat,
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but a data center in Kansas City has a little exposure.
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However, data center in New Orleans has
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significant exposure and is vulnerable
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to the adverse impacts from a hurricane.
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NIST 800-30 Revision 1
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describes a threat as any circumstance or
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event with the potential to adversely
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impact organizational operations and assets,
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individuals and other organizations, or the nation.
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Threat sources are not always malicious,
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as they may also be accidental.
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Some common categories for threat sources are human,
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a malicious outsider or insider,
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or just human error.
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Natural, fire, flood,
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tornado, hurricane, snowstorm, or earthquake.
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Technical, hardware or software failure,
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malicious code or wireless technologies.
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Environmental,
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meaning hazardous waste or biological agent.
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Operational, a process whether manual
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or automated that affects the confidentiality,
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integrity, or availability of the information.
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Now, a vulnerability is
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a weakness in an information system,
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system security procedures, internal controls,
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or implementation that could
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be exploited by a threat source.
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There are many software tools that can be used to
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scan and identify software vulnerabilities in a system.
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But know that vulnerabilities may
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exist in other areas than
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systems and a few examples of vulnerabilities are,
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a receptionist or guard who's not at
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the front interests to limit access.
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Patching and configuration of IT systems are done on
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an ad hoc basis and neither documented or up-to-date,
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or no quality review process for
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manual changes made to a fax number
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on a form that is faxed electronically.
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Lastly, risk is determined
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by evaluating a number of factors and
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variables along with the potential impact that
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might occur as a result of a risk being exercised.
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ISO 27005, definition of risk
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is the potential that
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a given threat will exploit a vulnerability.
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NIST definition is a measure of
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the extent to which an entity is threatened by
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a potential circumstance or event that
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is typically a function of the adverse impacts
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that would arise if the circumstance or event
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occurs and the likelihood of occurrence.
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In summary, we've covered assets, exposure,
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likelihood, and impact, threat, vulnerability, and risk.
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Next step is Risk Management Part 2.
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