[ISN] Risk Management: Do It Now, Do It Right

From: InfoSec News (alerts@private)
Date: Tue Apr 01 2008 - 00:24:46 PST


http://www.informationweek.com/news/showArticle.jhtml?articleID=207000078

By Greg Shipley
InformationWeek
March 29, 2008 
(From the March 31, 2008 issue)

Astrophysicists and information security officers have something in 
common: The universes they monitor are expanding at an inexorable pace, 
and turning back time is not an option. We're being bombarded with 
competing demands around regulatory compliance and the next big thing in 
security, while the breaches we combat are having a larger impact. Our 
adversaries have gone from hobbyists to organized criminals, disclosure 
and privacy laws continue to be passed, the cost to clean up after 
attacks is rising, and reactive information security has proved 
ineffective. The stakes are a lot higher on all fronts, and the time for 
major change is clearly upon us.

It doesn't take a rocket scientist to realize that, in a 
resource-strapped world, prioritization is the critical component to 
setting an IT security agenda. Define the organization's most critical 
systems and data sets. Assess the risks associated with these assets. 
Decide which risks are acceptable, which are mitigable, and which can be 
transferred. Build a plan, and allocate resources appropriately.

If only it were that easy.

There's no one-size technology, process or approach to security. But 
after analyzing successes and failures and talking to industry leaders,

one trend stands out: Organizations are shifting from yesterday's 
binary, yes/no, good/bad information security thinking to a pragmatic 
approach of weighing risks and acting accordingly.

We must ensure a risk management approach is integrated into all 
processes, remain diligent about project selection, move beyond just 
firefighting, and get smarter with technology investments. For some 
organizations, this will require a wholesale transformation. Consider 
these critical factors when making the leap.


NEW WAY OF THINKING

We're all barraged by buzzwords. "Compliance" and "risk management" 
appear to be mandatory in all security product positioning, with 
"governance" not far behind. It's debatable how many products actually 
add to governance, risk management, and compliance as a philosophy, but 
compliance and risk management are absolutely relevant. We'd argue that 
the effectiveness of IT organizations of all sizes will soon depend on 
their ability to master the art of managing risk. If we don't excel 
here, we'll be flying blind at the expense of the organizations and 
clients we've been tasked to protect.

So what's the unifying thread? Maturity. Glitzy hacking trend reports 
and fear-based proposals don't cut it with most of the C-level execs we 
work with. Without a common language to communicate risks (read: money), 
most security concerns go unheard.

But slinging the risk management mantra and actively managing risk 
aren't the same thing. The process and science behind the concept are 
critical. Areas of risk management vary in maturity, from Lloyd's of 
London and the domestic insurance industry to evolving IT risk 
frameworks such as ANZ 4360, NIST 800-30, and Factor Analysis of 
Information Risk (FAIR). Still, regardless of the depth and background 
of your understanding or the likelihood that you'll adopt a formal risk 
management framework in the IT environment, some concepts and necessary 
adjustments are critical.

For starters, when communicating risk, it's important to understand the 
audience and scope. "I learned the hard way that loosely throwing around 
risk terms when it came to IT projects in an insurance company was a bad 
practice," says Mike Murray, an information security practitioner in the 
financial services industry. "When the audience is used to looking at 
actuarial tables, you're going to look pretty stupid, pretty quickly, 
outside of the IT ranks if you're not careful."

Terminology matters, and historically, IT hasn't done the best job here. 
For example, to IT the word "asset" may mean anything from a physical 
item (a USB thumb drive) to a system (order entry) to data sets 
(technical schematics from R&D). Complicating matters, IT's view of 
assets (web14, or worse, IP address 10.1.2.3) relative to the business 
view of an asset (part of the North American order-tracking system) has 
been disjointed at best. Bridging this gap is crucial for productive 
discussions about risk. Progressive IT and security teams have done 
these mappings and--arguably as important--communicated the linkages to 
relevant business stakeholders. Without these steps, there's little 
chance of an effective risk conversation, much less effective 
prioritization.

The terms "vulnerability" and "threat" also are critical to the process, 
and they're often confused. Loosely defined, a vulnerability is a state 
or defect of an asset that could be exploited to create loss or harm; a 
threat is an entity or action that can cause loss or harm. Going into 
greater detail on the use of these terms in the IT and security contexts 
probably warrants an article all to itself, but suffice it to say that 
using language properly and consistently is essential when talking about 
risk. For a comprehensive discussion of IT risk terminology, check out 
FAIR's primer.

[...]


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