How to Assess Cyber Risk: A Plain-Language Method for Business Owners
A plain-language method for assessing cyber risk: find critical systems, inventory access, list threats, score likelihood and impact, keep a register.
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Some IT providers advertise HIPAA compliant managed IT services. The phrase sounds reassuring, but it can hide a misunderstanding that leaves a practice exposed. No IT provider can make a medical practice compliant on the practice's behalf. What a provider can do is put the right safeguards in place, operate them reliably, sign the right agreement and give the practice the evidence it needs. This guide explains what that should look like.
This article is general information, not legal advice. Practices should rely on their privacy or compliance lead and qualified counsel for decisions about their obligations.
There is no certification standard approved by the U.S. Department of Health and Human Services (HHS) that demonstrates a business associate's HIPAA compliance, as Microsoft's HIPAA compliance documentation notes. Some providers hold third-party assessments or attestations, which can be useful evidence, but they do not transfer the practice's obligations to the provider. When a provider says it is "HIPAA compliant," ask what that means in practice: which safeguards it operates, what it documents and whether it will sign a business associate agreement.
Under HIPAA, a vendor that creates, receives, maintains or transmits protected health information on a covered entity's behalf is a business associate. An IT provider that manages servers, backups, email or workstations containing patient information usually falls into that category. The practice should have a signed business associate agreement before the provider receives access. The agreement sets out how the provider safeguards the information, how quickly it reports incidents and what happens to data when the relationship ends. Read the incident reporting terms closely, because a slow report from a vendor leaves the practice less time to meet its own obligations.
Ask about subcontractors too. If the provider stores backups with a third-party data center or uses other vendors that can reach patient information, those relationships need their own agreements. A good provider will tell you who is downstream without being pushed. And remember what a business associate agreement does not do: it allocates responsibility between two parties, but it does not make either of them compliant.
The HIPAA Security Rule organizes most of its requirements into administrative, physical and technical safeguards. A managed IT provider supports parts of each.
These cover risk analysis and risk management, workforce security training, access management processes and contingency planning. The provider supplies technical input and evidence. The practice owns the policies and decisions.
These cover control over facility access, workstation use and security, and the handling and disposal of devices and media. The provider can manage device inventories, encryption and secure disposal records.
These cover unique user accounts, automatic logoff, encryption, audit logging and protection of data in transit. Much of the provider's day-to-day work supports them, through multi-factor authentication, encryption management, log collection and monitoring.
The Security Rule requires covered entities to conduct an accurate and thorough risk analysis and to manage the risks it identifies. An IT provider can perform technical assessments that feed into it, such as a cybersecurity risk assessment, but the practice is responsible for completing the analysis, deciding how to treat each risk and keeping the documentation.
The analysis also needs revisiting when the practice changes: a new location, a telehealth platform, a new EHR, a change in who holds administrator access or the acquisition of another practice. An assessment that produces findings but no remediation plan leaves the practice with documented problems it has not fixed, so ask how any provider supports the follow-through.
Write down who owns each responsibility before the relationship begins. A simple list might look like this:
| Responsibility | Practice | IT provider | Software vendor |
|---|---|---|---|
| Risk analysis and policies | Owns | Supplies technical input | Supplies application information |
| User access approvals | Approves | Implements and removes | Application roles, where applicable |
| Multi-factor authentication, patching, endpoint protection | Approves scope | Operates | Secures its own platform |
| Backup and recovery | Sets recovery priorities | Operates and tests local and cloud backups | Backs up hosted application data |
| Incident response | Leads decisions and notifications with counsel | Investigates and contains | Supports for its application |
| Workforce training | Requires and tracks | Delivers security awareness content | Trains on the application |
Adjust the list to your agreements. The point is that nothing important is left unowned.
Our article on what HIPAA, NIST and ISO 27001 require for patching covers the patching evidence in more detail.
Inzo provides network infrastructure, cybersecurity, backup and recovery and managed support for healthcare organizations from our headquarters in Chesterfield. Learn more on our healthcare technology page, or book an Insight Session.
No. HHS has not approved any certification standard that demonstrates a business associate's HIPAA compliance. Look instead for a signed business associate agreement, clearly defined safeguards and regular evidence that they operate.
If the provider can access protected health information while managing your systems, it is generally a business associate and should sign one. Confirm with your compliance lead or counsel.
The covered entity, meaning the practice, is responsible. An IT provider can supply technical assessments and evidence that feed into it.
Use an email service configured with appropriate safeguards whose provider has signed a business associate agreement with the practice. Confirm the agreement exists before staff send patient information, and apply the same review to fax and messaging services.
It typically includes operating technical safeguards such as access control, encryption, patching, monitoring and backup, plus producing the documentation a practice needs for its own risk analysis and audits.
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