This episode explains how to perform impact categorization using Federal Information Processing Standards Publication 199 and why that categorization drives almost every downstream FedRAMP choice. We define confidentiality, integrity, and availability impact levels and show how to evaluate the highest watermark across information types processed, stored, or transmitted by the system. You will learn to document rationale tied to mission effects and harm criteria, and to reflect categorization in your SSP, control tailoring, and interconnection expectations. We also discuss alignment with agency risk tolerance and why misclassification creates costly rework in boundary, baseline, and assessment planning.

We translate the method into practice with clear examples. For a SaaS handling moderate sensitivity data, we show how availability requirements might set the watermark and trigger resilience controls, while a different workload’s confidentiality needs could drive encryption and key management scope. We address multi-tenant scenarios where one customer’s use case can raise the effective impact posture, and we explain how to handle mixed data types by explicitly stating assumptions and data segregation strategies. Finally, we connect categorization to continuous monitoring by mapping incident reporting thresholds, penetration test vectors, and change approval rigor to the chosen impact level. A well-supported FIPS 199 decision becomes the anchor that keeps requirements consistent and evidence expectations stable throughout the lifecycle. Produced by BareMetalCyber.com, where you’ll find more cyber audio courses, books, and information to strengthen your educational path. Also, if you want to stay up to date with the latest news, visit DailyCyber.News for a newsletter you can use, and a daily podcast you can commute with.