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Although you feel that you have taken solid steps in the security of MegaCorp, you would like to have some more analysis and documentation of the state of the network, and the systems in place protecting MegaCorp resources.
The CEO wants to know what MegaCorp should be spending on securing these resources, and wants justification for the numbers that you provide. You inform the group that you will be able to provide them with a Risk Analysis on the defined resources, and you also suggest that MegaCorp perform a full business Risk Analysis, and that they make it part of their policy to perform ongoing analysis.
During the first meeting after the agreement on analysis, a sales manager tells you the following; "We are rolling out a new online sales component to our organization. It will be up to you to design the system for this, but we anticipate it being up and running next month and are looking to have initial revenues of around $1,000 per day through that component."
"All right," you respond "If the initial revenues are going to be around $1,000 per day, what are you projecting will be the daily revenue through this in 6 and 12 months?"
The CEO answers this question, "Our projections are to have an average of about $2,000 per day in six months and $3,000 per day within a year."
"And, what is this system going to be responsible for? By that I mean, is this just an order taking machine, is it tied into inventory, is it tied into shipping, and so on?" you ask.
"Right now, and as far as the current plan goes, this is an order taking system. It will not be tied into any of our other systems."
"Are we going to get a new Internet connection for this server, or is it going to run off the current connection we have? I recommend a new connection, but am curious to know if that has been considered."
"I think we can stick with our current connection for the time being. If it seems like there is a need in the future for the expenses of a new connection, we can discuss it then. Anything else?"
"Not right now, as issues come up I will talk to you about them." The rest of the meeting does not require your attendance, so you head back to your office.
Based on your knowledge of the MegaCorp environment, select the solution that best allow you to justify the expense of protecting the new server.}
A. Since this is the only system that you are requested to analyze, and the CEO is looking for numbers, you decide to run a fast Qualitative Risk Analysis. You know that the server is going to generate $6,000 per month, and you think there will most likely be an attack on the server at least twice a month. This means that for this server, you have an SLE of $6,000 and an ALE of 24. With an SLE of $6,000, and with an ALE of 24, you determine that the SRO for the system is $144,000.
You report to the CEO that there is a risk of $144,000 to this server every year, and you recommend that for the first year that full risk amount be spent on mitigating the risk, so that in subsequent years you can report the risk has been reduced to zero.
B. You decide to perform a Quantitative Risk Analysis on the server. You meet with the sales director to find out that the server will only hold a copy of the catalog. You estimate that since the system will be directly connected with a public IP Address, and since it will hold customer data that it is a likely target for attack.
You know that you have solid security systems in place, but you think there will be a legitimate attack to compromise this server at least once per month. Based on this information you decide that the ARO is 12, and the SLE will be one day of operation plus one day to restore the system, therefore $6,000. With an ARO of 12, and with a SLE of $6,000 you determine that the ALE for the system is $72,000.
You report to the CEO that although the current security systems in place are solid, this server requires security of it??s own. You identify the $72,000 that could be lost every year due to attacks, and request resources to properly protect the server.
C. You decide to follow the Facilitated Risk Analysis Process (FRAP) for the server. You sit down in your office by yourself, and you list out the vulnerabilities that might exist for the server. You then categorize those vulnerabilities into High, Medium, and Low.
Taking each individual vulnerability that you discovered, you further detail that listing the degree of impact that vulnerability could have, again categorizing them as High, medium, and Low.
When you are done, you have a list that shows five vulnerabilities, only one of them High, and that is attempted system compromise. You have identified this vulnerability to have a Low impact, since it will only contain the MegaCorp catalog and no other critical services.
You report back to the CEO that the current systems in place are adequate, and your only suggestion is to possibly increase the power backup to a larger model for the server.
D. With only this one single system to analyze, you decide that a Quantitative Risk Analysis is appropriate. You identify three major threats: Power Outage, Administrator-level system compromise, and Denial of Service attacks. You assign the power outage a low likelihood, the administrative compromise a medium likelihood, and the DoS a high likelihood.
You assign the power outage a high level of damage, you assign the administrative compromise a high level of damage, and you assign the DoS a low level of damage. Since the likelihood of the power outage is low, you do not recommend spending any new money on this in your report to the CEO. Since the level of damage is so high due to the administrative compromise, you recommend new security systems to protect against that threat. You recommend that the systems in place to mitigate the threat of the administrative compromise also be capable of addressing the DoS threat.
E. You decide to perform a Qualitative Risk Analysis on the new server. You organize a short meeting with the sales director to get a better idea of what will be stored on the system. You know the projected sales volumes, and you find out that on the system will be nothing more than a catalog, where people can order MegaCorp products.
Since there is nothing of value stored on the server, you decide that the Level of Damage that would happen if this system is compromised is low and that the Likelihood of an Attack to gain access is low. Since the company needs the system for sales, you decide that the threat of a power loss is significant.
Your report back to the CEO is that the current security systems in place are adequate for the new system, that it will be protected by the firewall and IDS. You do request to increase the resources for power equipment, specifically a large battery backup for the server.
Answer: B

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