final Risk Management Paper for the HealthNet company

This Risk Mitigation Plan is for Health Network, Inc. (Health Network), a fictitious health services organization headquartered in Minneapolis, Minnesota. Health Network has over 600 employees throughout the organization and generates $500 million USD in annual revenue. The company has two additional locations in Portland, Oregon and Arlington, Virginia, which support a mix of corporate operations. Each corporate facility is located near a co-location data center, where production systems are located and managed by third-party data center hosting vendors.

Health Network has three main products: HNetExchange, HNetPay, and HNetConnect.

HNetExchange is the primary source of revenue for the company. The service handles secure electronic medical messages that originate from its customers, such as large hospitals, which are then routed to receiving customers such as clinics.

HNetPay is a Web portal used by many of the company’s HNetExchange customers to support the management of secure payments and billing. The HNetPay Web portal, hosted at Health Network production sites, accepts various forms of payments and interacts with credit-card processing organizations much like a Web commerce shopping cart.

HNetConnect is an online directory that lists doctors, clinics, and other medical facilities to allow Health Network customers to find the right type of care at the right locations. It contains doctors’ personal information, work addresses, medical certifications, and types of services that the doctors and clinics offer. Doctors are given credentials and are able to update the information in their profile. Health Network customers, which are the hospitals and clinics, connect to all three of the company’s products using HTTPS connections. Doctors and potential patients are able to make payments and update their profiles using Internet-accessible HTTPS Web sites.

critical “1” Risks and short-term remediation

The risk/threats identified are:

I. Loss of customers due to production outages caused by various events, such as natural disasters, change management, unstable software, and others

a. Remediation: Remediation will be different for each cause like below.

For Natural disasters: Implementation of backup strategies will help to recover quick and having insurance to organization will control the loss.

For Change Management: Should count what are the necessary changes must be done and must do those changes so that business will continue.

For unstable software: Change necessary software’s or servers will cause production outage, because continuation of business will cover this loss so having better software’s and servers would be needed for efficient productivity of business.

For Others (like fire accidents or similar): Replacement and installation of things such as smoke detectors, manual triggers, temperature gauge alarms, fire extinguishers and water sprinklers. These will control the loss during accidents.

“you know the value of your assets; you can then prioritize their importance. If an asset is worth $1,000, it needs one level of protection. If another asset is worth $1 million, it needs another level of protection.” (Gibson, 2015)

b. CBA: Since organization revenue is $500 million, the loss can occur because of this risk/threat would around $2.5 million.

Loss before control: $2500000

If we have backup strategies and insurance, the loss cost will be control and it would be around $50000

Loss after control: $50000

The cost for control would depends on strategies we use, I will consider the cost of safety measures we took like software/server changes and replacement and installation of things such as smoke detectors, manual triggers, temperature gauge alarms, fire extinguishers and water sprinklers. For these implementations cost would be around $5000.

Control Cost: $5000

Total Cost benefit will get after this remedy is: $2,445,000 as calculated below.

$2500000 - 50000 - 5000= $2,445,000

II. Loss or destruction of company information due to insider threats

a. Remediation: This will be controlled by doing employee monitoring which mean before hiring background check is need and after hiring should implement access control to the employee. By this access control data access can limited to required employee only.

Access control: “These protect data from unauthorized disclosure. Access controls help protect the confidentiality of data.” (Gibson, 2015)

b. CBA: The loss cost would depend on the loss information, but the average could be around $1.5 million.

If access control is implemented the loss after control would be wound be around $15000.

Cost to implement Access control which mean having a system administrator would be around $1500.

Total cost benefit is: $1,483,500

(1500000-15000-1500=1,483,500)

major “2” / Minor “3” Long-term remediation

I. Loss of company data due to hardware being removed from production systems

a. Remediation:

i. Time to time hardware maintenance.

ii. Always monitor the data and threats.

iii. Keeping up to date data backups.

iv. Security of data by access control i.e. data accessibility, Securing data transfer

b. CBA:

Loss cost estimated wound be around: $1million

Loss cost of after implementing remedy around: $10,000

Cost to implement control: $1500 (frequent maintenance)

Cost benefit: 1000000-10000-1500= $988,500

II. Loss of company information on lost or stolen company-owned assets, such as mobile devices and laptops

a. Remediation:

i. Data lose will be caused by Virus or malicious attacks: these would be controlled using anti-virus.

ii. To same data from company-owned assets: firewall security and high security password protect can be used.

b. CBA:

Loss of cost would be around $0.5 million

Loss of cost after implementing the remedy: 5000

Cost to implement remedy: 500

Cost benefit: 500000-5000-500= $494,500

III. Theft of company confidential information due to insider threats.

a. Remediation:

i. Controlling the data access using access control.

ii. Should not have possibility to take company data outside which is possible using external hard drives like CD’s and USB’s. So, disabling these options.

b. CBA: The loss cost would be same as “Loss of company information on lost or stolen company-owned assets”

Loss of cost would be around $0.5 million

Loss of cost after implementing the remedy: 5000

Cost to implement remedy: 500

Cost benefit: 500000-5000-500= $494,500

IV. Loss of customers or revenue due to changes in regulatory landscape that may impact operations.

a. Remediation: Since customers won’t like immediate changes, changes should implement slowly which will help employees to get enough time understand and explain the same to customers. So, always have backups and digital data for long term uses.

b. CBA:

Loss of cost would be around $0.75 million

Loss of cost after implementing the remedy: 5000

Cost to implement remedy: 500

Cost benefit: 750000-5000-500= $794,500

implementation plan

Table 1 from Risk Assessment Plan

Figure 1

References

Gibson, Darril. (2015). Managing Risk in Information Systems, 2nd edition. Burlington, MA: Jones & Bartlett.

Identifying Assets and Activities Within Risk Assessment Boundaries, p 145

Data and Information Assets, p 175.