© 2006 jupitermedia corporation webcast titlethe role of security in it service management december...

© 2006 Jupitermedia Corporation

Webcast TitleThe Role of Security in IT Service Management

The Role of Security in IT Service Management

December 19, 2006

2:00pm EST, 11:00am PST

Speaker:

George Spafford, Principal Consultant, Pepperweed Consulting



Housekeeping

• Submitting questions to speaker– Submit question at any time by using “Ask a question”

section located on lower left-hand side of your console.– Questions about presentation content will be answered

during 10 minute Q&A session at end of webcast.

• Technical difficulties?– Click on “Help” link– Use “Ask a question” interface



Main Presentation



Agenda

• How to view security in the world of ITSM• Risk Management and Controls• Why security plays an important role in Service

Delivery and Service Support• Where there are resources to learn more



The Goal

Organizational Goal

Accounting Manufacturing

Sales Customer ServiceHuman Resources



What ITIL Represents

• ITIL is the de facto standard approach towards IT Service Management (ITSM)

• It is about IT delivering quality services that meet the needs of the organization

• IT services enable business processes that, in turn, enable the business to meet goals

• The management of risk to attain goals is essential• Security is a key stakeholder in requirements definition• Security requirements are business requirements!

– Security in support of X service– Security in support of the enterprise



Each Functional Area Has Objectives that Support the Goal

Organizational Goal



A1. Financial Reporting

A3. Customer Tracking

A2. Employee Tracking

Examples:

A1 – “Provide accurate and timely financial reporting data for the public and internal decision making.”

A2 – “HR will track timely and accurate vital information about employees including key dates, training, performance, skills, and benefits. ”

A3 – “Customer service will ensure that all customer master profiles are current and accurate.”



IT Provisions Services That Add Value and/or Mitigate Risks

Organizational Goal



A1. Financial Reporting

A3. Customer Tracking

A2. Employee Tracking

Corporate ERP Spreadsheets

HR System

Corporate ERP

CRM System

IT in support of X business service …



Why is risk management so important?

Limited Resources and Seemingly Unlimited Risks!

US companies are adopting a risk based approach and going after what matters most in order to be sustainable. It makes sense to spend $1,000

to safeguard $1Billion but not to safeguard $100. Understand and prioritize risks to focus compliance efforts.



Formal Risk Management

• Formal risk management needs to be implemented, ideally at the enterprise level, to ensure that organizational risks are identified and properly managed.– IT needs risk management to prioritize mitigation efforts and

to help facilitate discussions with senior management– Senior management can use risk management to

understand risks to objectives, the current risk levels and prioritize investments intended to mitigate risks



OrganizationalGoal



If a risk doesn’t map to objectives and goals, then does it matter?

NO



One challenge is how to prioritize hundreds, if not thousands, of risks.

Risks need to be quantified to facilitate ranking.



Quantifying Risk

• Simple approach is to use Likert (1-5) scales to develop ordinal ranking

• Inherent Risk Score = Probability x Impact• Residual Risk Score = IRS x (100% - % Mitigated)• If nothing has been mitigated, RRS = IRS• Management defines what level of RRS is acceptable• How do you factor risks to objectives with varying importance?

One method is multivariate risk models.– Weighted Average IRS = Probability x (Risk 1 weight x impact) x (Risk 2

weight x impact) x ….

• Note – Risk Management is an exercise in objective subjectivity hence the need to get buy-in on the model and scores/values used



A Spreadsheet-based ERM Model

0.25 0.25 0.25 0.25

ID Description Affected CI Category Found byDate

FoundProbability Strategic Operations Reporting Compliance

Inherent Impact

Inherent Risk

Score

% Mitigated

Residual Impact

Residual

Risk Score

1 This is a sample risk 00-000-1234 IT Bob 11/02/04 3 2 5 5 5 4.25 12.75 20% 3.40 10.20 2 Data center fire 10-001-0001 IT Tom 01/10/05 2 3 5 5 5 4.50 9.00 40% 2.70 5.40 3 Virus on fileserver X 20-010-0123 IT Sara 01/10/05 4 2 4 3 3 3.00 12.00 50% 1.50 6.00 4 Firewall breach Due to open port 20-020-0022 IT Bob 01/10/05 4 2 4 4 4 3.50 14.00 0% 3.50 14.00 5 Default passwords on AS400a1 20-020-0001 IT Greg 02/15/05 3 2 3 4 4 3.25 9.75 50% 1.63 4.88

Use 1-5 scale but be sure to define it1 Could happen in the next year but very unlikely2 Could happen in the next year and has 25% odds3 Could happen in the next year and has 50% odds4 Could happen in the next year and has 75% odds5 This will happen in the next year

Use 1-5 scale but be sure to define it Use 1-5 scale but be sure to define it1 Will cause minor disruption to a supporting objective. 1 Will cause minor disruption to reports2 Will cause a major disruption to a supporting objective 2 Will cause a disruption to reports but can be recovered.3 A key objective will be minorly disrupted, but within the risk tolerance. 3 Will cause a major disruption to reports4 A key objective will be majorly disrupted and move outside the risk tolerance. 4 Will disrupt reporting and take significant effort to recover.5 A key objective will not be remotely obtained. 5 Will halt reporting and trigger an investigation.

Use 1-5 scale but be sure to define it Use 1-5 scale but be sure to define it1 Will cause minor disruption to a department and/or cost less than $10,000 1 Will cause a minor compliance issue but not a deficiency.2 Will disrupt a department for up to 8 hours and/or cost up to $50,000 2 Will cause a deficiency.3 Will disrupt a facility for up to 8 hours and/or cost up to $75,000 3 May cause a deficiency and trigger disclosure4 Will disrupt a facility for an unknown period of time and/or cost up to $100,000 4 May cause a significant deficiency and trigger disclosure5 Will disrupt business and/or cost at least $150,000 5 Will cause a material weakness and trigger disclosure

Impact to Operations

Impact to Reporting

Impact to Compliance

Risk Workbook

Weights for each objective area

Probability

Impact to Strategy

Updated: MM/DD/YYYY

You will need to define the scales for each of the four impact areas. The provided scales are for reference only.

Note, this spreadsheet model is at http://www.spaffordconsulting.com/Risk_v5.xls



In response to risks we implement controls



What Are Controls?

• Controls limit variation around the attainment of objectives. In the case of SOX, we need controls that reasonably assure the integrity of the financial reports.

• All processes contain an inherent level of variation that can not be eliminated.• Only put in enough controls to lower the residual risk to a level that is

acceptable to management.• Controls can be

– Manual – Meaning they take a person to perform without automation.– Automated – Meaning that technology is used to enable the process partially or

entirely.– Important Note – In accounting terminology, an automated control is a control

that is embedded in a system such as bounds checking, audit trails, workflow, etc.

• Three broad types– Preventive Controls – Intended to stop a future transgression. Examples –

policies and procedures– Detective Controls – Attempt to find out about an event that has already

happened. Example – Log review– Corrective Controls – Aimed at restoring the last known good state. Example –

Restore from tape



Use Controls to Manage Risk to Objectives and Goals

• Risks cause variation around the achievement of objectives and goals

• Some variation is always present and inevitable

• By implementing processes with adequate controls, we strive to create a reasonable assurance that we can attain our objective

• Controls are found in– The services IT maintains and provisions– Within the applications users access

• Examples: Unique user IDs and passwords, password complexity, scheduled account reviews, firewalls, IPS/IDS, antivirus, generators, UPS, Security Event Management tools, etc.

ME

AS

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EN

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TIME

Mean

LCL

UCL



Control Objectives for Information and related Technologies (COBIT)

• Maintained by the IT Governance Institute (ITGI), which is part of the Information Systems Audit and Control Association (http://www.isaca.org)

• ISACA started in 1967, has over 50,000 members in over 140 countries.• Essentially, COBIT is the de facto reference for IT Controls. Nothing else quite

like it exists.• Four domains

– Plan and Organize – Strategy, Tactics, Vision– Acquire and Implement – Identification, Development, Purchase,

Implementation– Deliver and Support – Security, Continuity, Management of Data, Operations– Monitor and Evaluate – Assessments and Audit

• 34 High-Level Control Objectives• Over 300 Detailed Control Objectives• Example:

– Domain: Deliver and Support• High Level Control Objective – “DS5 Ensure Systems Security”

– Detailed Control Objective – “DS5.1 Management of IT Security”– Detailed Control Objective – “DS5.2 IT Security Plan”– Detailed Control Objective – “DS5.6 Security Event Definition”– …and so on



Security is a Risk Mitigation Process

We implement security controls commensurate with risk to safeguard objectives and goals



Appropriate PPT Blending

• A process is a course of action with an intended result • Technology has been the mainstay of Information

Technology– Technology can’t fix all of our problems!

• The need to find and retain qualified people is known, but not always stressed enough

– They need adequate training– Segregation of Duties– Cross-training/backups

• What hasn’t received as much attention are the processes

– Leveraging best practices– A focus on quality management– Continuous Improvement Processes

• Any technology can be rendered ineffectual by poor personnel and process choices

– Very true for security as well as other processes• Our results will depend on our ability to properly blend

people, processes and technology into the required solution based on the needs of the business and tied to supporting/protecting functional area objectives and organizational goals

PeopleP

roce

sses

Tech

no

log

yOutcomes



You can have processes without adequate controls, but you can not have an effective and efficient control environment without good processes.



Service Support, Delivery & Security

Service LevelManagement

IncidentManagement

ProblemManagement

Service DeskFunction

CapacityManagement

AvailabilityManagement

IT FinancialManagement

IT ServiceContinuity

Management

IT SecurityManagement

ControlProcesses

ConfigurationManagement

ChangeManagement

ReleaseManagement



Change Management

• IDC – 80% of network availability issues caused by human error• CompTIA – 60% of breaches are caused by human error• Change management is a risk management function that assesses

the potential impacts of a change to the organization• Security should:

– Sit on the Change Advisory Board (CAB)– Review change requests– Review changes that are rolled back– Review unauthorized changes for security events

• Security must work through Change Management and not around it– Ideally through operations and not direct– Quis custodiet ipsos custodes – Who will guard the guards?– Never forget about human error!



Configuration Management

• Focuses on tracking and documenting configurations and then providing this information to other areas

• Configuration tracks relationships to understand who is affected and assesses impact.

• Enables the control of configuration items by monitoring, maintaining and verifying

– Resources– Status– Relationships

• Security is a consumer of Configuration Management– Infrastructure details

• Relationships• IT and Business Owner Contact information

– User profiles– Incident records (alerts + manually logged)– License information (if tasked with tracking down unlicensed information)– Reviewing security configurations– Security logs / records– Review of CMDB access levels



Service Level Management

• “The goal for SLM is to maintain and improve IT Service quality, through a constant cycle of agreeing, monitoring and reporting upon IT Service achievements and instigation of actions to eradicate poor service – in line with business or cost justification.” – ITIL Service Support

• Concerned with understanding the customer/organization’s security requirements for each service – SLM negotiates service security levels based on input from the security function

• The SLA defines security requirements



Incident Management / Service Desk

• Concerned with restoring service as quickly as possible

• Alerts should route into Incident Management, not pagers– Key is to manage alerts, not fire and forget– Need consistent handling

• Security needs to help IM with– The development of incident call scripts and workflow– The identification and proper coding of security incidents– Processing of security related Incidents



Problem Management

• Determination of root cause of actual and potential incidents and, where it makes business sense, eliminate it.

• Security involved with problem teams to establish solid solutions– Working on security related problem ticket– Ensuring that proposed solution doesn’t compromise

security

• Security opens problem tickets for Problems



Release Management

• Ensures the quality of releases into production via formal checks. Spans from development through testing to operations

• Security will define what the security requirements of releases will be– Controls in a service– Testing of controls– Documentation of controls

• Security will check on the contents and security of the Definitive Software Library (DSL)



Capacity Management

• Tasked with translating business capacity requirements into IT service and then Configuration Item (CI) resource requirements

• Ensure that security is factored into capacity requirements

• Ensure that capacity constraints don’t cause vulnerabilities– Out of disk space errors causing untrapped script failures,

etc.



Availability Management

• To understand the Availability needs of the business and to continuously strive to improve

• Availability is a/the key element of Customer satisfaction• You can not have sustainable high-availability without fundamentally

sound security• Availability Management contributes to the Security Policy• Availability Management advises SLM on all Confidentiality,

Integrity, and Availability (CIA) issues



IT Financial Management

• Budgeting, Costing, Charge backs and Value for IT services

• Security measures need proper budgeting, costing, etc.– ROI is often ex post facto – in the value is often only

“provable” after an event– Security of the ITFM services



IT Service Continuity Management

• Defines how IT will support the Business Continuity Plans (BCP) of the organization

• A disaster may create/exacerbate vulnerabilities• Security needs to understand and approve the

security implications of the ITSCM plans



Are compliance, security and operations mutually exclusive?

Of Course Not!

Operations

ComplianceSecurity



Continuous Improvement Is Key

• Like any process, you must pick a place to start and begin

• As you gain more experience, evolve the various aspects of security as the organization matures

• Be sure to tie security activities to functional area objectives and organizational goals

Where do we want to be?

Where are we now?

How do we get to where we want to be?

How do we monitorProgress?

Vision and Objectives

Audits / Assessments

Process Improvement(Leverage Best Practices)

Metrics and Critical Success Factors

* Adapted from ITIL Service Support Graphic



Additional Resources



IT Infrastructure Library (ITIL)

• Office of Government Commercehttp://www.ogc.gov.uk/guidance_itil.asp

• British Educational Communications and Technology Agency (BECTA)http://www.becta.org.uk/tsas

• ITIL Open Guide http://www.itlibrary.org/

• Microsoft’s Operations Framework (MOF)http://www.microsoft.com/technet/itsolutions/cits/mo/smf

• IT Service Management Forumhttp://www.itsmf.org



The IT Process Institute

• Maintained by the Information Technology Process Institute (http://www.itpi.org)

• Visible Ops leverages ITIL and is prescriptive– Change Management is key, as is reduction in variation and integration

of process areas– It is split into three project phases to start

• Phase 1 – Stabilize the Patient• Phase 2 – Catch & Release and Find Fragile Artifacts• Phase 3 – Create a Repeatable Build Library

– Phase 4 – Continual Improvement – is the start of a process.– Published June 2004– Over 50,000 copies sold primarily by word-of-mouth recommendations

• ITPI Controls Benchmark Study– Scientific study of what controls really matter– From 300 to 68 to a core 21 foundation controls– Highly recommended!!



Other Best Practice Sources

• Australia Standard 4360 Risk Management - http://www.riskmanagement.com.au/

• British Standards Institute (BSI) - http://www.bsonline.bsi-global.com/ • Carnegie Mellon’s Software Engineering Institute (SEI) -

http://www.sei.cmu.edu/ • Computer Emergency Response Team (CERT) - http://www.cert.org/ • COSO ERM - http://www.coso.org • Federal Financial Institutions Examination Council (FFIEC) –

http://www.ffiec.gov • International Organization for Standardization (ISO) – (ISO 17799 and 27000 for

security) - http://www.iso.ch • ISACA – COBIT- http://www.isaca.org • OECD Guidelines on Information Security -

http://www.oecd.org/document/42/0,2340,en_2649_34255_15582250_1_1_1_1,00.html

• The Systems Security Engineering Capability Maturity Model – (SSE-CMM) - http://www.sse-cmm.org/index.html

• The Institute of Internal Auditors - http://www.theiia.org • US General Accounting Office (GAO) – http://www.gao.gov • US National Institute of Standards (NIST) - http://www.csrc.nist.gov/



Thank you for the privilege of facilitating this webcast

George [email protected] http://www.pepperweed.com

Daily News Archive and Subscription Instructionshttp://www.spaffordconsulting.com/dailynews.html



Questions?



Thank you for attendingIf you have any further questions, e-mail

[email protected]

© 2006 jupitermedia corporation webcast titlethe role of security in it service management december...

Documents

management of risk

service management itsm

service management agenda

service support

needs risk management

support of x service

essential security

service delivery