Security Management Practices

Topics to be covered

• Change control

• Data classification

• Employment policies & practices

• InfoSec policies

• Risk management

• Roles and responsibilities

• Security awareness training

• Security management planning

Change control & management

• Why is change control & change management a security issue?• Many businesses live or die on data integrity

• Changes can break a security model

• Modifying system breaks warranty

• Gartner Group analyst recently stated that a rogue Y2K programmer can cause $1B in potential losses

• Needed since change requester does not understand the security implications of their request

• Security administrator must analyze and assess carefully the impact to the system

Change control & management

• Tools• Checksums

• Digital signatures

• Tripwire

• Effective change control can uncover:• cases of policy violation by staff; where programs are

installed or changed without following the proper notification procedures

• Possible hardware failure leading to data corruption

• Viruses, worms, malicious code

• For change control & management to work, you must have:

• Golden copies of the software, for comparison use or database generation

• Secure infrastructure. Software must be securely stored on physically protected media. If an intruder can get root, and change the golden copies, then the change control tools will be ineffective.

Change control & management

• Hardware• Disks, peripherals• Device drivers• BIOS

• Application and operating systems software• Upgrades• Service packs, patches, fixes• Changes to the firewall rulebase/proxies• NLM’s• Router software

Change control & management

• Policies, procedures and processes• Develop polices that will stabilize the production

processing environment by controlling all changes made to it

• Formal change control processes will help to ensure that only authorized changes are made, that they are made at the approved time, and that they are made in the approved manner

• Promptly implement security patches, command scripts, & similar from vendors, CERT, CIAC, etc.

• Have procedures for roll-back to prior versions in case of problems, AKA, don’t burn your software bridges

Change control & management

Data classification

• Classification is part of a mandatory access control model to ensure that sensitive data is properly controlled and secured

• DoD multi-level security policy has 4 classifications:• Top Secret• Secret• Confidential• Unclassified

• Other levels in use are:• Eyes only• Officers only• Company confidential• Public

Data classification benefits

• Data confidentiality, integrity & availability are improved since appropriate controls are used throughout the enterprise

• Protection mechanisms are maximized

• A process exists to review the values of company business data

• Decision quality is increased since the quality of the data upon which the decision is being made has been improved

Data classification

• Top Secret - applies to the most sensitive business information which is intended strictly for use within the organization. Unauthorized disclosure could seriously and adversely impact the company, stockholders, business partners, and/or its customers

• Secret - Applies to less sensitive business information which is intended for use within a company. Unauthorized disclosure could adversely impact the company, its stockholders, its business partners, and/or its customers

• Confidential - Applies to personal information which is intended for use within the company. Unauthorized disclosure could adversely impact the company and/or its employees

• Unclassified - Applies to all other information which does not clearly fit into any of the above three classifications. Unauthorized disclosure isn’t expected to seriously or adversely impact the company

MAC data classification

• In MAC systems, every subject and object in a system has a sensitivity label and a set of categories:• classification [category]

• Top Secret [CEO, CFO, Board Members]

• Confidential [Internal employees, auditors]

• The function of categories is that even someone with the highest classification isn’t automatically cleared to see all information at that level. This support the concept of need to know

Misc. data classification issues

• In a commercial setting, responsibility for assigning data classification labels is on the person who created or updated the information

• With the exception of general business correspondence, all externally-provided information which is not public in nature must have a data classification system label.

• All tape reels, floppy disks and other computer storage media containing secret, confidential, or private information must be externally labeled with the appropriate sensitivity classification

• Holders of sensitive information must take appropriate steps to ensure that these materials are not available to unauthorized persons.

Data classification

• Roles & responsibilities• Information owner• Information custodian• Application owner• User manager• Security administrator• Security analyst• Change control analyst• Data analyst• Solution provider• End user

Employment policies & practices

• Background checks/security clearances

• Checking public records provides critical information needed to make the best hiring decision.

• Conducting these often simple checks verifies the information provided on the application is current and true, and gives the employer an immediate measurement of an applicant’s integrity.

Background checks

What does a background check prevent potentially prevent against:

• lawsuits from terminated employees• lawsuits from 3rd-parties or customers for negligent hiring• unqualified employees• lost business and profits• time wasted recruiting, hiring and training• theft, embezzlement or property damage• money lost (to recruiters fees, signing bonus)• negligent hiring lawsuit• decrease in employee moral• workplace violence, or sexual harassment suits

Background checks

• Who should be checked? Employee background checks should be performed for all sensitive positions. Information security staff in sensitive positions include those responsible for:• firewall administration

• e-commerce management

• Kerberos administrator

• SecurID & Password usage

• PKI and certificate management

• router administrator

Background checks

• What can be checked for an applicant:• Credit Report

• SSN searches

• Workers Compensation Reports

• Criminal Records

• Motor Vehicle Report

• Education Verification & Credential Confirmation

• Reference Checks

• Prior Employer Verification

Military security clearance

• Of the most meticulous background checks is those requiring a DoD security clearance. After reviewing the 30-page Defense Industrial Personnel Security Clearance Review, one will get a new understanding of painstaking review. A defense security clearances is generally only requested for individuals in the following categories whose employment involves access to sensitive government assets:

• Members of the military;

• Civilian employees working for the Department of Defense or other government agencies;

• Employees of government contractors.

Military security clearance

A DoD review, more correctly known as a personnel security investigation is comprised of the following:

• a search of investigative files and other records held by federal agencies, including the FBI and, if appropriate, overseas countries

• a financial check• field interviews of references (in writing, by

telephone, or in person), to include coworkers, employers, personal friends, educators, neighbors, and other individuals, as appropriate

• a personal interview with the applicant conducted by an Investigator

Employment agreement

• Non-compete

• Non-disclosure

• Restrictions on dissemination of corporate information, i.e., press, analysts, law enforcement

Hiring & termination

• Policies and procedures should come down from HR

• Should address:• how to handle employee’s departure

• shutting down accounts

• forwarding e-mail and voice-mail

• lock and combination changes

• system password changes

Separation of duties

• The principle of separating of duties is that an organization should carefully separate duties, so that people involved in checking for inappropriate use are not also capable of make such inappropriate use

• No person should be responsible for completing a task involving sensitive, valuable or critical information from beginning to end. Likewise, a single person must not be responsible for approving their own work

Separation of duties

• Separate:• development/production

• security/audit

• accounts payable/accounts receivable

• encryption key management/changing of keys

• Split knowledge• Encryption keys are separated into two

components, each of which does not reveal the other

Information security policies

• Policy is perhaps the most crucial element in a corporate information security infrastructure

• Marcus Ranum defines a firewall as “the implementation of your Internet security policy. If you haven’t got a security policy, you haven’t got a firewall. Instead, you’ve got a thing that’s sort of doing something, but you don’t know what it’s trying to do because no one has told you what it should do”

• Corporate computing is a complex operation. Effective policies can rectify many of the weaknesses and faults

Information security policies

• Benefits:• Ensure systems are utilized in the manner intended

for

• Ensure users understand their roles & responsibilities

• Control legal liability

Information security policies

• Components of an effective policy:• Title• Purpose• Authorizing individual• Author/sponsor• Reference to other policies• Scope• Measurement expectations• Exception process• Accountability• Effective/expiration dates• Definitions

Information security policies

• How to ensure that policies are understood:• Jargon free/non-technical language

• Rather then, “when creating software authentication codes, users must endeavor to use codes that do not facilitate nor submit the company to vulnerabilities in the event that external operatives break such codes”, use “passwords that are guessable should not be used”.

• Focused

• Job position independent

• No procedures, techniques or methods• Policy is the approach. The specific details & implementations should

be in another document

• Responsibility for adherence• Users must understand the magnitude & significance of the policy. “I

thought this policy didn’t apply to me” should never be heard.

Information security policies

• How should policies be disseminated?• New hires should get hard copies at orientation• Rehires should go through orientation• Hard copies• Web/corporate intranet• Brochures• Videos• Posters• e-mail/voice-mail

Risk management

• Security risks start when the power is turned-on. At that point, security risks commence. The only way to deal with those security risks is via risk management

• Risks can be identified & reduced, but never eliminated

• No matter how secure you make a system, it can always be broken into given sufficient resources, time, motivation and money

• People are usually cheaper & easier to compromise than advance technological safeguards

Qualitative and quantitative

• There are two different risk management metrics: qualitative and quantitative

• Quantitative, or a quasi-subjective, risk management attempts to establish and maintain an independent set of risk metrics & statistics

• Qualitative

Qualitative vs. quantitative

• Qualitative - Pros• Calculations are simple and readily understood and execute• Not necessary to determine quantitative threat frequency & impact data• Not necessary to estimate the cost of recommended risk mitigation

measures & calculate cost/benefit• A general indication of significant areas of risk that should be

addressed is provided

• Qualitative - Cons• Risk assessment & results are essentially subjective in both process &

metrics. Use of independently objective metrics is eschewed.• No effort is made to develop an objective monetary basis for the value

of targeted information assets• No basis is provided for cost/benefit analysis of risk mitigation

measures. Only subjective indication of a problem• It is not possible to track risk management performance objectively

when all measures are subjective

Qualitative vs. quantitative

• Quantitative - Pros• Assessment & results are based substantially on independently

objective processes & metrics. Thus, meaningful statistical analysis is supported

• The value of information (availability, confidentiality & integrity) as expressed in monetary terms with supporting rationale, is better understood. Thus, the basis for expected loss is better understood.

• A credible basis for cost/benefit assessment of risk mitigation measures is provided. Thus, information security budget decision-making is supported

• Quantitative - Cons• Calculations are complex. If they are not understood or effectively

explained, management may mistrust the results of black-box testing• A substantial amount of information about the target information & its

IT environment must be gathered• There is not yet a standard, independently developed & maintained

threat population & frequency knowledge base. Thus, users must rely on the credibility of the vendors who develop & support the automated tools or do perform the research.

Risk management nomenclature

• Annualized loss expectancy (ALE)• Single loss expectance x annualized rate of occurrence = ALE

• Annualized rate of occurrence (ARO)• On an annualized basis, the frequency with which a threat is expected to occur

• Exposure factor• A measure of the magnitude of loss or impact on the value of an asset

• Probability• Chance or likelihood, in a finite sample, that an event will occur or that a

specific loss value may be attained should the event occur

• Threat• An event, the occurrence of which cold have an undesired impart

• Safeguard• Risk reducing measure that acts to detect, prevent or minimize loss

associated with the occurrence of a specified threat or category of threats

• Vulnerability• The absence or weakness of a risk-reducing safeguard

Risk assessment

• Since you can’t protect yourself if you do not know what you are protecting against, a risk assessment must be performed

• A risk assessment answers 3 fundamental questions:• Identify assets - What I am trying to protect?

• Identify threats - What do I need to protect against?

• Calculating risks - How much time, effort & money am I willing to expend to obtain adequate protection?

• After risks are determined, you can then develop the policies & procedures needed to reduce the risks

Identifying assets

• Tangibles• Computers, communications equipment, wiring• Data• Software• Audit records, books, documents

• Intangibles• Privacy• Employee safety & health• Passwords• Image & reputation• Availability• Employee morale

Identifying threats

• Earthquake, flood, hurricane, lightening

• Structural failure, asbestos

• Utility loss, i.e., water, power, telecommunications

• Theft of hardware, software, data

• Terrorists, both political and information

• Software bugs, virii, malicious code, SPAM, mail bombs

• Strikes, labor & union problems

• Hackers, internal/external

• Inflammatory usenet, Internet & web postings

• Employee illness, death

• Outbreak, epidemic, pandemic

Calculating (quantifying) risks

• This is the hard part. Insurance & historical records may help, but your actuary is your best friend.• How much damage did Kevin Mitnick do? Estimates

range from $500,000 to $120,000,000

• Review the risks• Lists should be regularly updated

• Small changes in operations or corporate structure can have significant risk implications

• Changes such as location, vendor, M&A, etc., must be included into the risk factor

Cost/benefit analysis

• Cost of a loss• Often hard to determine accurately

• Cost of prevention• Long term/short term

• Adding up the numbers• Output of an Excel spreadsheet listing assets, risks &

possible losses

• For each loss, know its probability, predicted loss & amount of money needed to defend against the loss

Security awareness

• Must be driven from the top-down

• Must be comprehensive, all the way down to the floppy & hard copies

• Education

• Hard copies

• Web-based

• Training & education

Security management planning

• But most importantly, to be successful in selling security you must know your company’s or client’s business

• Know what is important• Each industry has differing priorities

Identify costs• Initial investment• ongoing costs

Identify benefits• Help Desk reduction• Common data locations• Reduced Remote Access costs• Improve Business Partner access • Enhanced public perception• Ernst & Young Cyberprocess Certification

Security management planning

Identify potential losses if security is not properly implemented

• Trade secrets• confidential information• personal e-mail• adverse publicity• viruses, worms, malicious Java and ActiveX applications• denial of service• hard drive reformats, router reconfigurations• M&A• financials• hacked web pages• breach of Human Resources information

Security management planning

Management ProcrastinationFour primary reasons why the decision maker typically procrastinates in deciding whether to allocate funds or commence the initiative:• Unable to understand or quantify security threats and technical vulnerabilities. This results in buying decision paralysis.• Unable to measure (through quantitative or qualitative analysis) the severity and probability of risk.• Begins the analysis with a preconceived notion that the cost of controls will be excessive or the security technology does not exist.• Believes that the security solution will interfere with the performance or appearance of the business product

Security management planning