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Asset Valuation 107
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Transaction value for which the asset is responsible Time incurred by an employee or contractor to receive, configure, or maintain an asset Loss of productive employee time, or work backlog incurred
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Replacement and repair costs can be obtained from an enterprise s procurement department, which in turn obtains them either from a VAR (value-added reseller) or directly from the vendor. Regulatory fines and penalties are usually publicly and readily available from the entity that enforces the fines, such as a local or federal government. Hard costs associated with assets that serve a health and safety purpose include hospital and insurance fees, as well as the cost of a cleanup from a fire or flood. Use Table 6.6 to qualify the financial value placed on the asset. 3. Determine the impact to business. Determine the impact to business processes by considering the following:
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Loss of customer or investor confidence as a result in the compromise of the asset Loss of competitive advantage due to compromise of security properties Impact to enterprise partner relationships. or other contractual repercussions Lack (or presence) of alternate service: that is, if an alternate service exists that can fulfill customer needs, than the loss of one service (or asset) may have reduced implications
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QUALITATIVE Extreme DESCRIPTION The asset has an extreme monetary value for the enterprise. Loss or damage of the asset would probably bankrupt the enterprise. The asset has a major monetary value. Loss or damage of the asset would impose a substantial financial burden on the enterprise. The asset has a significant monetary value. Repair or replacement would require significant funds. The asset has moderate financial value. Loss or damage of the asset would require financial repurposing. The asset has low financial value to the company. The asset has no monetary value.
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Table 6.6
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RATING 6
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Enterprise Security and Risk Management
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Extent of disruption to other enterprise services due to asset dependencies Percentage of customer base affected by outage or degradation of service
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Disaster recovery and business continuity plans found in many enterprises may already sort assets by value to the organization. This can provide a starting point for defining the relative business value an enterprise places on the asset. Business impact is inherently more subjective and difficult to assess than hard costs. Quite often one may not be able to completely predict the loss of customer confidence, or the extent of loss of competitive advantage. One may, however, draw on events that have occurred to other enterprises of similar size in similar markets. Use Table 6.7 to qualify the business value placed on the asset. 4. Determine the overall value. Determine the overall value the enterprise places on the asset from the results of the security, financial and business impact valuations. Use Table 6.8 to qualify the overall value of the asset to the enterprise and collect them in Table 6.9. There will not be direct translation from these three ratings to the single overall value. It is more likely that the overall value will be the highest of the three ratings. That is, if an asset has a very high security value, but a low financial value, its overall value should still be appropriately high.
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Table 6.7 Business impact rating
RATING 6 QUALITATIVE Extreme DESCRIPTION The enterprise cannot function without this asset. Its compromise or loss would result in immediate termination of critical business services. This asset represents a major service of the enterprise. Its loss would result in termination of a critical service or severe degradation of many services. This asset supports many enterprise services. Its loss would results in termination of a major service or degradation of services. This asset supports a fair number of customers, or supports a major service of the enterprise. Its loss would result in degradation of more important services. This asset supports an ancillary enterprise service. Its compromise would have a slight impact on business services. The loss of asset would have no impact to the business.