Regulatory Compliance Standards and Frameworks

FIPS PUB 199 is an impact assessment model used by DFARS 252.204-7012, as mentioned in NIST 171 DFARS and CMMC.

Here is the entire FIPS PUB 199

Required by Federal Information Security Management Act of 2002 (FISMA) all subcontractors and prime contract agencies working with the Federal Government must complete a FIPS PUB 199 assessment, designed to recognize “the importance of information security to the economic and national security interests of the United States.” 

FISMA tasked NIST, the National Institute of Standards and Technology with responsibilities for standards and guidelines, including the development of:

• Standards to be used by all federal agencies to categorize all information and information systems collected or maintained by or on behalf of each agency based on the objectives of providing appropriate levels of information security according to a range of risk levels.
• Guidelines recommending the types of information and information systems to be included in each category; and
• Minimum information security requirements (i.e., management, operational, and technical controls), for information and information systems in each such category.

Only 13 pages in length, the FIPS 199 is part of all Risk Management processes, as "Categorize System", which in this case is the set of steps necessary to determine if the system is grouped as Low, Medium, or High.

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1 PURPOSE (This is directly quoted from the standard. It's short and there's no reason to skip a word of it.)

The E-Government Act of 2002 (Public Law 107-347), passed by the one hundred and seventh Congress and signed into law by the President in December 2002, recognized the importance of information security to the economic and national security interests of the United States. Title III of the E-Government Act, entitled the Federal Information Security Management Act of 2002 (FISMA), 
tasked NIST with responsibilities for standards and guidelines, including the development of: 

• Standards to be used by all federal agencies to categorize all information and information systems collected or maintained by or on behalf of each agency based on the objectives of providing appropriate levels of information security according to a range of risk levels; 
• Guidelines recommending the types of information and information systems to be included in each category; and 
• Minimum information security requirements (i.e., management, operational, and technical controls), for information and information systems in each such category. 

FIPS Publication 199 addresses the first task cited—to develop standards for categorizing information and information systems. Security categorization standards for information and information systems provide a common framework and understanding for expressing security that, for the federal government, promotes: (i) effective management and oversight of information security programs, including the coordination of information security efforts throughout the civilian, national security, emergency preparedness, homeland security, and law enforcement communities; and (ii) consistent reporting to the Office of Management and Budget (OMB) and Congress on the adequacy and effectiveness of information security policies, procedures, and practices. Subsequent NIST standards and guidelines will address the second and third tasks cited. 

2 APPLICABILITY 

These standards shall apply to: (i) all information within the federal government other than that information that has been determined pursuant to Executive Order 12958, as amended by Executive Order 13292, or any predecessor order, or by the Atomic Energy Act of 1954, as amended, to require protection against unauthorized disclosure and is marked to indicate its classified status; and (ii) all federal information systems other than those information systems designated as national security systems as defined in 44 United States Code Section 3542(b)(2). Agency officials shall use the security categorizations described in FIPS Publication 199 whenever there is a federal requirement to provide such a categorization of information or information systems. Additional security designators may be developed and used at agency discretion. State, local, and tribal governments as well as private sector organizations comprising the critical infrastructure of the United States may consider the use of these standards as appropriate. These standards are effective upon approval by the Secretary of Commerce. 

3 CATEGORIZATION OF INFORMATION AND INFORMATION SYSTEMS 

This publication establishes security categories for both information1 and information systems. The security categories are based on the potential impact on an organization should certain events occur which jeopardize the information and information systems needed by the organization to accomplish its assigned mission, protect its assets, fulfill its legal responsibilities, maintain its day-to-day functions, and protect individuals. Security categories are to be used in conjunction with vulnerability and threat information in assessing the risk to an organization. 

1 Information is categorized according to its information type. An information type is a specific category of information 

(e.g., privacy, medical, proprietary, financial, investigative, contractor sensitive, security management) defined by an organization or, in some instances, by a specific law, Executive Order, directive, policy, or regulation. 

2 Adverse effects on individuals may include but are not limited to, loss of the privacy to which individuals are entitled under law. 

Security Objectives 

The FISMA defines three security objectives for information and information systems: 

CONFIDENTIALITY 

“Preserving authorized restrictions on information access and disclosure, including means for protecting personal privacy and proprietary information…” [44 U.S.C., Sec. 3542] 

A loss of confidentiality is the unauthorized disclosure of information. 

INTEGRITY 

“Guarding against improper information modification or destruction, and includes ensuring information non-repudiation and authenticity…” [44 U.S.C., Sec. 3542] 

A loss of integrity is the unauthorized modification or destruction of information. 

AVAILABILITY 

“Ensuring timely and reliable access to and use of information…” [44 U.S.C., SEC. 3542] A loss of availability is the disruption of access to or use of information or an information system. 

Potential Impact on Organizations and Individuals 

FIPS Publication 199 defines three levels of potential impact on organizations or individuals should there be a breach of security (i.e., a loss of confidentiality, integrity, or availability). The application of these definitions must take place within the context of each organization and the overall national interest. 

The potential impact is LOW if— 

− The loss of confidentiality, integrity, or availability could be expected to have a limited adverse effect on organizational operations, organizational assets, or individuals.2 

AMPLIFICATION: A limited adverse effect means that, for example, the loss of confidentiality, integrity, or availability might: (i) cause degradation in mission capability to an extent and duration that the organization is able to perform its primary functions, but the effectiveness of the functions is noticeably reduced; (ii) result in minor damage to organizational assets; (iii) result in minor financial loss; or (iv) result in minor harm to individuals. 

The potential impact is MODERATE if— 

− The loss of confidentiality, integrity, or availability could be expected to have a serious adverse effect on organizational operations, organizational assets, or individuals. 

AMPLIFICATION: A serious adverse effect means that, for example, the loss of confidentiality, integrity, or availability might: (i) cause significant degradation in mission capability to an extent and duration that the organization is able to perform its primary functions, but the effectiveness of the functions is significantly reduced; (ii) result in significant damage to organizational assets; (iii) result in significant financial loss; or (iv) result in significant harm to individuals that does not involve loss of life or serious life-threatening injuries. 

System information (e.g., network routing tables, password files, and cryptographic key management information) must be protected at a level commensurate with the most critical or sensitive user information being processed, stored, or transmitted by the information system to ensure confidentiality, integrity, and availability. 

The potential impact value of not applicable only applies to the security objective of confidentiality.  

The potential impact is HIGH if— 

− The loss of confidentiality, integrity, or availability could be expected to have a severe or catastrophic adverse effect on organizational operations, organizational assets, or individuals. 

AMPLIFICATION: A severe or catastrophic adverse effect means that, for example, the loss of confidentiality, integrity, or availability might: (i) cause severe degradation in or loss of mission capability to an extent and duration that the organization is not able to perform one or more of its primary functions; (ii) result in major damage to organizational assets; (iii) result in major financial loss; or (iv) result in severe or catastrophic harm to individuals involving loss of life or serious life-threatening injuries.