Pierre G. Noel3rd of March 2009
The Smart Software Symposium: Risk Management, Information
Security & Corporate Governance
3
Agenda
The Globally Integrated Enterprise
Key Security Trends
IBM’s Point of View
IBM Security
Q&A
3
4
Global Crisis - What’s here, what’s ahead
4
LayoffsBack Office, essentially
Incidents IncreaseInternalExternal
Regulators are back with a vengeance
Vox Populi, Vox DeiiCost Reduction
Conserve CashDemonstrate financial prudence
55
New Forms of Collaboration
Globalization and Globally Available
Resources
Access to streams of information in the Real
Time
Billions of mobile devices accessing the
Web
New possibilities.New complexities.
New risks.
Welcome to the smart planet… and a smarter infrastructure
Managing risks introduced by new opportunities
Data and information explosion Data volumes are doubling every 18 months.*Storage, security, and discovery around information context is becoming increasingly important.
Supply chainThe chain is only as strong as the weakest link… partners need to shoulder their fair share of the load for compliance and the responsibility for failure.
Clients expect privacyAn assumption or expectation now exists to integrate security into the infrastructure, processes and applications to maintain privacy.
Compliance fatigueOrganizations are trying to maintain a balance between investing in both the security and compliance postures.
Emerging technologyVirtualization and cloud computing increase infrastructure complexity.Web 2.0 and SOA style composite applications introduce new challenges with the applications being a vulnerable point for breaches and attack.
Wireless worldMobile platforms are developing as new means of identification.Security technology is many years behind the security used to protect PCs.
*Source: Pyramid Research, October 2007
Simplified Compliance Landscape
Concern AML/Fraud IT Control Financial Control Privacy
ComplianceMandate:
Patriot Act & Bank Secrecy Act Ext
■FISMA■DCID■NISPOM
■Basel II■SOX
■HIPAA, GLBA■EU Data Directive
Basic Requirement:
In order to mitigate the risk of money laundering, fraud or identity theft, the general requirement is to protect integrity, availability and authenticity of financial transactions
Assure the availability and integrity of critical infrastructure assets for the purpose of ensuring the public good
■SOX: Assure the integrity and availability of the financial reporting process in order to protect the individual shareholder
■BASEL II: For the good of the shareholder, ensure the integrity and availability of the IT domain through effective IT governance
Assure the confidentiality, integrity, and availability of select data sets collected from private citizens.
Buzzwords: ■Money Laundering■Fraud■Identity Theft
■Hackers■Crackers■Trojans■DOS
IT Governance & Risk Management
Acceptable Use of Information
Concern owner: Financial Crime Unit ■IT■IS
■CIO■CFO■CCO
■CISO■Privacy Officer■Internal Audit
Not all risks are created equal
Frequency ofOccurrences
Per Year
1,000
100
10
1
1/10
1/100
1/1,000
1/10,000
1/100,000 $1 $10 $100 $1,000 $10k $100k $1M $10M $100M
freq
uent
infr
eque
nt
Consequences (Single Occurrence Loss) in Dollars per Occurrencelow high
Virus
WormsDisk Failure
System Availability Failures
Pandemic
Natural Disaster
Application Outage
Data Corruption
Network Problem
Building Fire
Terrorism/Civil UnrestFailure to meet Compliance
Mandates
Workplace inaccessibility
Failure to meet Industry standards
Regional Power Failures
Lack of governance
Data Leakage
Complexity and confusion keep customers from acting strategically:
Extended relationships create a tangle of potential legal liability
Compliance requirements are inconsistent within and across geographies
Confusion as to where to start, how much security & compliance control is “good enough”
Pressure to simply “check the box” has resulted in creation of compliance silos:
Silos lead to duplicative efforts and redundant spending as well as reduced visibility
The CSO struggles to become a consultant to the business:
Without a policy centric, risk based view, this is nearly impossible
Customers Tell Us They Suffer From “Fatigue”…
© 2009 IBM Corporation10
*Source: Publication Date: 2 October 2007/ID Number: G0015216
Classification: Failure to provide an inventory of assets and associated data classifications
Change Management: Failure to produce evidence of change mgmt on material systems.
Administrative Accounts: The organization does not tie administrative ("root") accounts to specific individuals.
Identity Management: The organization cannot show documentation of each user's privilege, or determine that each user has appropriate approved privilege.
Log Management: The organization can produce no evidence of log collection and analysis.
Segregation of Duties: The organization fails to appropriately segregate duties
Physical Access: Physical access to the data center is not appropriately controlled
BCDR: The organization has no documented, current, relevant business continuity and/or disaster recovery plan, nor evidence of internal controls requiring the periodic updating and review of such plans
Chain of Custody: The organization's agreements (contracts, MSAs, SLAs) with business partners and third-party service providers do not specifically address data protection requirements.
Training & Awareness: The organization can produce no evidence that employees know and understand corporate information security policies
Top IT General Control Deficiencies
1112
Number of security incidents
Source: CSO/PWC Global State of Information Security 2008 Study
Number of security incidents that occurred in the past 12 months
%
1213
Types of security incidents
Source: CSO/PWC Global State of Information Security 2008 Study
%
Why are Common Controls so “Boring”?
Privileged or technical users (90%)
Other (10%)
Sources: Forrester research, IdM Trends 2006; USSS/CERT
Insider Threat Survey 2005/6/7/8; CSI/FBI Survey, 2005/6/7; National Fraud Survey; CERT, various documents.
Who Causes Internal Incidents?
And the Barbarian is NOT very Bright…
Operator Error60%
Application Failure20%
Malicious Attacks20%
Evolving TechnologiesThe Rewards (and Risk) of Innovation
“We have put so many security products into our
systems that the complexity of the sum
of those security products has become itself part of
the problem.”Keynote Speaker
Source Boston Conference March 2008
“We have put so many security products into our
systems that the complexity of the sum
of those security products has become itself part of
the problem.”Keynote Speaker
Source Boston Conference March 2008
New technologies require new forms of
protection – and can be “disruptive”
Security systems themselves carry data
that amplifies risk
New technologies require new forms of
protection – and can be “disruptive”
Security systems themselves carry data
that amplifies risk
– Dan Geer– Dan Geer
Security foundation…critical controls pave the way
Critical Control Description
Manage Identity & Access
Process for assuring access to enterprise resources has been given to the right people, at the right time
Protect Data & Information
Capability that allows for granular protection of both unstructured and structured data, as well as leak prevention & acceptable use policy monitoring.
Manage SW & Application Releases
Process for assuring efficiency and integrity of the software development lifecycle
Manage Change & Configuration
Process for assuring routine, emergency and out-of-band changes are made efficiently, and in such a manner as to prevent operational outages.
Address Threat & Vulnerability
Process and capabilities designed to protect the enterprise infrastructure from new and emerging threats
Manage Security Event Log management capabilities designed to automate the process of auditing, monitoring and reporting on security and compliance posture across the enterprise
Manage Problem & Incident
Automated workflow and Service Desk designed to assure incidents are escalated and addressed in a timely manner. Forensics teams ready to respond to an emergency
Issues IBM Security Offerings
PEOPLE AND IDENTITY
Manage Identities and
Access
“How can my business benefit from
management of digital identity?”
Reduces the cost, increases efficiency and enables audit-ability of managing flow of users entering, using, and leaving the organization
Decreases risk of internal fraud, data leak, or operational outage Supports globalization of operations Enables shift from traditional brick & mortar sales to delivery of on-line services to customers and partners across the globe Improves end-user experience with Web-based business applications by enabling such activities such as single sign-on
Identity Lifecycle Management: Tivoli Identity and Access Management solutions,
High-Assurance Digital Identities: Trusted Identity Initiative
Identity Audit: Tivoli Security Compliance Insight Manager, Tivoli zSecure Audit
Identity & Access Design and Implementation Services
ISS Managed Identity Services GBS Security Services
Values
Understanding the identity risk gapCost of administering users and identities in-housePrivileged user activity unmonitoredDormant IDs or shared identities being used to
inappropriately access resources Failing an audit
Issues IBM Security Offerings
Reduces the cost, increases ability to meet audit and compliance mandates Provides a cost-effective way to meet legal discovery, hold and retention requirements Assures data is available to the right people, at the right time Assures data is not deliberately or inadvertently taken, leaked, or damaged Decreases number and complexity of controls integrated within the enterprise
ISS Data Security and Data Loss Prevention solution SIEM: Tivoli Compliance Insight Manager, ISS SiteProtector,
ISS Managed Security Services Data Encryption: Tivoli Key Lifecycle Manager, encrypted
tape and disk drives Data Classification: InfoSphere Information Analyzer,
Cognos, Enterprise Content Management, Discovery and Classification
Unstructured Data Security: Tivoli Access Manager Data Privacy and Masking: Optim Data Privacy
Solution GBS Security Services
Data stored on removable media that can be lost/stolen Data stored in the clear is easily accessible Inconsistent data policies Unstructured data Legal, regulatory and ethical exposure for the
organization Costs of data breaches, notification, brand value Failing an audit
DATA AND INFORMATION
Protect Data and
Information
“How can I reduce the cost and pain associated with tracking and controlling who touched what data when? How do I
assure that my data is available to the business, today and
tomorrow?” Values
Issues IBM Security Offerings
Reduce risk of outage, defacement or data theft associated with web applications Assess and monitor enterprise-wide security policy compliance Improve compliance with industry standards and regulatory requirements (e.g., PCI, GLBA, HIPAA, FISMA…) Improve ability to integrate business critical applications Automated testing and governance throughout the development lifecycle, reducing long-term security costs
Application Vulnerabilities: Rational AppScan, ISS Managed Security Services, ISS Application Risk Assessment services
Application Access Controls: Tivoli Access Manager Messaging Security: Lotus Domino Messaging, IBM
ISS Mail security solutions Security for SOA: WebSphere DataPower, Tivoli
Security Policy Manager, Tivoli Federated Identity Manager Application Security Assessment services GBS Security Services
Values
Web applications #1 target of hackers seeking to exploit vulnerabilities
Applications are deployed with vulnerabilities Poor security configs expose clients to business loss PCI regulatory requirements mandate application security 80% of development costs spent on identifying and fixing
defects Real and/or private data exposed to anyone with access to
development and test environments, including contractors and outsourcers
APPLICATION AND PROCESS
Secure Web Applications
“How can my business benefit from management of application security?”
Issues IBM Security Offerings
Reduces cost of ongoing management of security operations Improves operational availability and assures performance against SLA, backed by industry’s only guaranteed SLA for
managed protection services Increases productivity by decreasing risk of virus, worm and malcode infestation Decreases volume of incoming spam Drill down on specific violations to quickly address resolution Readily show status against major regulations
Values
Mass commercialization and automation of threats Parasitic, stealthier, more damaging attacks Poor understanding of risks in new technologies and
applications, including virtualization and cloud Weak application controls Lack of skills to monitor and manage security inputs Compounding cost of managing an ever increasing
array of security technologies Undetected breaches due to privilege access misuse
and downtime from incidents Inability to establish forensic evidence or demonstrate
compliance
NETWORK, SERVER AND END POINT
Manage Infrastructure
Security
“How does my business benefit from infrastructure
security protection?”
Systems Storage
Virtual Network
Threat Mitigation: ISS Network, Server and Endpoint Intrusion Detection and Prevention products powered by X-Force®, Managed Intrusion Prevention and Detection, Network Mail Security, Managed firewall services, Vulnerability Management and Scanning
SIEM: Tivoli Compliance Insight Manager, Security Event and Log Management services
Security Governance: Regulatory assessments and remediation solutions, Security architecture and policy development
Incident Response: Incident Management and Emergency Response services
Consulting and Professional Security Services: Security Intelligence and Advisory Services
GBS Consulting Services
IBM provides the business answers you need
Manage risk end-to-end for all infrastructure
domains
IBM Global Security Reach
IBM has the unmatched global and local expertise to deliver complete solutions – and manage the cost and complexity of
security
The only security vendor in the market with end-to-end coverage of the security foundation
15,000 researchers, developers and SMEs on security initiatives
200+ security customer references and 50+ published case studies
40+ years of proven success securing the zSeries environment
$1.5 Billion security spend in 2008
IBM: Comprehensive Security Risk & Compliance Management