DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 12-95
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	MARY ANN WYRSCH Director Unemployment Insurance Service
SUBJECT	:	On-Site Study For The Risk Analysis Project

1. Purpose. To request the assistance and cooperation of those State Employment Security Agencies (SESAs) selected to be part of the on-site study for the Unemployment Insurance (UI) Risk Analysis Project.

2. References.

   - Field Memorandum No. 67-94, Fiscal Year (FY) 1994 Unemployment Insurance (UI) Risk Analysis Project

   - Unemployment Insurance Program Letter (UIPL) No. 12-95, Risk Analysis Project

   - ETA Handbook No. 376, Guidelines for Internal Security in UI Operations.

3. Background. On August 2, 1994, Field Memorandum No. 67-94 was issued announcing the availability of funds for a Risk Analysis project. Selection of a SESA to carry out the project was on a competitive basis. The State of California's proposal was selected and ETA entered into a cooperative agreement with the California Employment Development Department (EDD) to carry out the project beginning October 1, 1994. In addition, on January 5, 1995, UIPL 12-95 was issued which identified specific project objectives and products which will be available as a result of the Risk analysis project.

   Objectives of the Risk Analysis Project include:

   1. Identifying specific weaknesses and future areas of vulnerability;

   2. Evaluating risk analysis policies and guidelines;

   3. Evaluating automated risk analysis products;

   4. Providing recommendations, approaches, training and analytical tools to assist SESAs in assessing vulnerabilities.

   Products which will be available to all SESAs as a result of the Risk Analysis project include:

   1. Analysis of program vulnerabilities and recommendations for minimizing identified vulnerabilities.

   2. An evaluation of automated risk analysis tools.

   3. A Risk Analysis training course which will include the use of automated methods and software in conducting a SESA UI risk analysis.

4. Project Status. The California Risk Analysis project staff have:

   1. Formed an Advisory Work Group (AWG).

      - The AWG consist of 8 members and the California Risk Analysis project staff.

      - The AWG is responsible for reviewing and commenting on project deliverables and assisting in formulating the project's scope, objectives, methodology, and time lines).

   2. Convened the advisory work group twice for the purpose of reviewing and commenting on project deliverables, methodology, time lines, etc.

   3. Categorized and determined risk analysis training needs of SESAs based on results from distributed questionnaire.

   4. Begun the evaluation process of risk analysis software.

   5. Developed a questionnaire to be used when visiting (nine selected) SESAs for an on-site study.

   To insure SESAs' input into the project, approximately nine SESAs will be selected (using a detailed selection methodology which ensures a representative sample of the entire population) for an on-site study. During the on-site study, key functions related to the UI program will be observed and short interviews with key managers (relative to current and future vulnerabilities of the Ui program) will be conducted. Individual SESA data from the on-site studies will not be disclosed.

   The on-site study will be performed from May through August 1995. A representative from the California EDD Risk Analysis project staff will be in contact with selected SESAs to arrange for convenient dates and to answer any questions about the visit.

   Participation by the selected SESAs is vital to the successful outcome of the project.

5. Action Required. SESA Administrators are requested to:

   1. Assist the California project EDD Risk Analysis staff if requested.

   2. Ensure that all appropriate SESA staff are aware of and familiar with the material in this UIPL,

6. Inquiries. Inquiries should be directed to the appropriate Regional Office.