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The Business of Information Security: Theo Nassiokas APAC regional head of IT risk, audit & regulatory –  Investment banking sector 2006 National Executive Chair –  Australian Information Security Association (AISA) Version 2.0 Information Security 2010 Regulatory, business and cultural alignment is critical
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object]
Information Security defined ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],* Security Convergence and ERM  – pg. 7 –  The Convergence of IT Security and Enterprise Security Risk Management –  The Alliance for Enterprise Security Risk Management -  www.aesrm.org  – A partnership of ISACA and ASIS International
Security silos to risk convergence What’s the value?
Security’s perception of business? ,[object Object],[object Object],[object Object],[object Object]
Security silos to risk convergence ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],** Security Convergence and ERM,   The Convergence of IT Security and Enterprise Security Risk Management  – pg. 5  –  http://www.aesrm.org/convergence_security_prof_view.html  – AESRM - 2009 – A partnership of ISACA and ASIS International  * Convergence – The Semantics Trap  –  http://www.csoonline.com/article/560063/Convergence_The_Semantics_Trap  - Steve Hunt - March 1, 2010
Who are the stakeholders? Security Convergence Physical IT Legal, Regulatory Industry codes IP Data Protection  Act (UK) Sarbanes Oxley S302, 404, 409 USA PATRIOT  Act ISO 27001 California Senate Bill 1386 BCP failure Phishing Cyber crime Basel II ISO 27002 Virus incidents Physical Theft Of Info Unauthorised Software Usage System Access Control License  Breach Staff screening Checks  Outsourced Service Provider Control Information Access Control Network domain access Unauthorised Physical access Targeted Attack – Mass Extinction Event   Privacy laws
Why is risk convergence important? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Alliance for Enterprise Security Risk Management -  www.aesrm.org  – A partnership of ISACA and ASIS International
Business ‘assurance’ to ‘enabler’ The objective of security?
Business’ perception of security? ,[object Object],[object Object],[object Object],[object Object]
Research re: security as an enabler ,[object Object],[object Object]
Research re: security as enabler ,[object Object]
Research re: security as enabler ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Good security strategy Aligned to the emerging regulatory framework
It is part of Corporate Governance ,[object Object],CORPORATE GOVERNANCE Risk/Security Governance IT Governance Administrative And Financial Governance Operational Governance Regulatory And Legal  Governance Security governance is a component of corporate governance
Why is it part of Corporate Governance? ,[object Object],Basel II Capital Adequacy Accord 2005  Bank for International Settlements  (Basel, Switzerland) Domestic Security Enhancement Act 2003 (PATRIOT II)  USA Vital Interdiction of Criminal  Terrorist Organizations  (VICTORY) Act 2003  USA Public Company Accounting Reform and Investor Protection (Sarbanes Oxley) Act 2002  USA SEC registered/NYSE or  NASDAQ listed Uniting and Strengthening  America by Providing Appropriate Tools Required to Intercept and  Obstruct Terrorism (USA PATRIOT) Act 2001 Financial Modernization  (Gramm-Leach-Bliley Act [GLB])  Act 1999 (USA)  (US banking & finance) Data Protection Act  1998  UK California Security Breach Information Act 2003 (SB1386) California, USA Data Protection Directive 1995 (Directive 95/46/EC) European Union
Why is it part of Corporate Governance? ,[object Object],Anti Money Laundering (AML)  and Counter Terrorism Financing (CTF) Act 2006  Commonwealth of Australia  (banks and insurance) Terrorism Insurance Act 2003  Commonwealth of Australia (insurance) Criminal Code Act 1995  Commonwealth of Australia Privacy Act 1988 (as amended) Commonwealth of Australia Liquid Fuel Emergency Act 1984 Commonwealth of Australia (fuel industry) Crimes Act 1914  Commonwealth of Australia The regulatory environment is the DNA of security strategy
Good security operations Aligned to business objectives
What is strategic risk? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Alignment to business strategy ,[object Object],Assessment of Support Services Requirements Vision and mission for Support Services Support Services Strategy Support Services Strategic Plan Support Services Operational Plans And Budgets Assessment of Security Requirements Vision and mission for Security Security Strategy Security Operational Plans And Budgets Security Strategic Plan Assessment of the Business Vision and mission for the Business Business Strategy Business Operational Plans and Budgets Business Strategic Plan “ Support services” may be risk, property or IT reporting lines depending on the security service e.g. physical or information and operational or governance
Example – Capability Growth Strategy ,[object Object],Convergence strategy ,[object Object],Strategic Planning  achieves strategy Capability Today Capability Tomorrow ,[object Object],[object Object],[object Object],[object Object],[object Object],achieved through:
Show me the money! Increasing likelihood of budget approvals
Is leading an innovation easy?  ,[object Object],[object Object]
Aligning projects to corporate culture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ROI - Broad programs Vs focussed projects
Know your organisation’s project governance process
Conclusion ,[object Object],[object Object],[object Object],[object Object],[object Object]
A message from a past leader ,[object Object],[object Object],[object Object],[object Object]
Questions? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Thank you for your time!
Appendix ,[object Object],(Source: Forrester Research, "Trends 2005: Security Convergence Gets Real“)   Actual ‘security convergence’ project budgets,  based on surveying 60 end users from Canada, Europe and the United States: Spending on Converged Security Projects (per year in millions)   2004 2005 2006 2007 2008 Public sector $250 $500 $1,200 $2,600 $5,001 Physical/logical access control projects  $30 $90 $248 $542 $994 Large-scale convergence projects $10 $36 $93 $202 $453 Small projects  $10 $30 $81 $172 $277 Other projects performed jointly by IT and physical security departments $10 $35 $92 $191 $315 Total  $311 $691 $1,713 $3,707 $7,039

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The Business Of Information Security V2.0

  • 1. The Business of Information Security: Theo Nassiokas APAC regional head of IT risk, audit & regulatory – Investment banking sector 2006 National Executive Chair – Australian Information Security Association (AISA) Version 2.0 Information Security 2010 Regulatory, business and cultural alignment is critical
  • 2.
  • 3.
  • 4. Security silos to risk convergence What’s the value?
  • 5.
  • 6.
  • 7. Who are the stakeholders? Security Convergence Physical IT Legal, Regulatory Industry codes IP Data Protection Act (UK) Sarbanes Oxley S302, 404, 409 USA PATRIOT Act ISO 27001 California Senate Bill 1386 BCP failure Phishing Cyber crime Basel II ISO 27002 Virus incidents Physical Theft Of Info Unauthorised Software Usage System Access Control License Breach Staff screening Checks Outsourced Service Provider Control Information Access Control Network domain access Unauthorised Physical access Targeted Attack – Mass Extinction Event Privacy laws
  • 8.
  • 9. Business ‘assurance’ to ‘enabler’ The objective of security?
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Good security strategy Aligned to the emerging regulatory framework
  • 15.
  • 16.
  • 17.
  • 18. Good security operations Aligned to business objectives
  • 19.
  • 20.
  • 21.
  • 22. Show me the money! Increasing likelihood of budget approvals
  • 23.
  • 24.
  • 25. ROI - Broad programs Vs focussed projects
  • 26. Know your organisation’s project governance process
  • 27.
  • 28.
  • 29.
  • 30.

Notes de l'éditeur

  1. Methodology: From April 25 to May 7, 2006 a total of 1,037 surveys were completed in the U.S. and 1,203 in Europe (UK 235; France 238; Germany 242; Spain 245; Italy 243). The statistical confidence interval for the U.S. and the European results is plus or minus 3% at a 95% level of significance.
  2. Methodology: From April 25 to May 7, 2006 a total of 1,037 surveys were completed in the U.S. and 1,203 in Europe (UK 235; France 238; Germany 242; Spain 245; Italy 243). The statistical confidence interval for the U.S. and the European results is plus or minus 3% at a 95% level of significance.
  3. Methodology: From April 25 to May 7, 2006 a total of 1,037 surveys were completed in the U.S. and 1,203 in Europe (UK 235; France 238; Germany 242; Spain 245; Italy 243). The statistical confidence interval for the U.S. and the European results is plus or minus 3% at a 95% level of significance.
  4. As mentioned earlier, Security Governance has emerged to become a key component of Corporate Governance. Googling “security governance” returns 39,000 hits (@July 31 2005). The number of hits that are not a subset of IT Governance a far fewer. On the first 10 pages of Google hits, less that 10 of these was non-IT centric Security Governance.
  5. Let’s consider the Trade Practices Act 1974 (Cth)… Sec. 74 – Warranties Implied in the Provision of a Service, requires certain warranties to be in place, e.g. When money is deposited into a bank branch, and the branch is held up by an armed robber, the money is not debited from customer accounts. However, in a hypothetical situation where an internet banking account is compromised, although money stolen could be replaced, how are identities replaced, where the customer’s name and address are stolen from the compromised account?
  6. Let’s consider the Trade Practices Act 1974 (Cth)… Sec. 74 – Warranties Implied in the Provision of a Service, requires certain warranties to be in place, e.g. When money is deposited into a bank branch, and the branch is held up by an armed robber, the money is not debited from customer accounts. However, in a hypothetical situation where an internet banking account is compromised, although money stolen could be replaced, how are identities replaced, where the customer’s name and address are stolen from the compromised account?
  7. Building stakeholder relationships to leverage synergies Vision, mission and strategy formation, planning and implementation that is aligned to business objectives Security capabilities developed in the context of business need to provide a clear value proposition
  8. Raising Your Return on Innovation Investment By Alexander Kandybin and Martin Kihn   5/11/04 Each company has an intrinsic innovation effectiveness curve. Here are three ways to lift it. Pillar One: Understand Your Innovation Effectiveness Curve Pillar Two: Master the Entire Innovation Value Chain Pillar Three: Don’t Do It All Yourself
  9. Raising Your Return on Innovation Investment By Alexander Kandybin and Martin Kihn   5/11/04 Each company has an intrinsic innovation effectiveness curve. Here are three ways to lift it. Pillar One: Understand Your Innovation Effectiveness Curve Pillar Two: Master the Entire Innovation Value Chain Pillar Three: Don’t Do It All Yourself