The Impact Of Proposed Cybersecurity Legislation On Private Sector CISOs - Miami Security Forum

Edward Ferrara

At the upcoming Forrester Security IT Forum (November 9) in Miami, Florida, I will present information on President Obama's cybercrime legislative initiative. This presentation and discussion will focus on the pending legislation in Congress and the Obama administration’s proposal to strengthen cybercrime law. There is a real need for this. Today there are 46 states with cybercrime breach reporting laws. While similar, there are enough differences to make reporting more complex. In addition, these laws only address PII and do very little to address other types of cybercrime. This new proposal addresses both PII and attacks on the nation’s critical infrastructure. The proposal stiffens criminal penalties and provides for the Department of Homeland Security to serve as the “new sheriff in town” when it comes to cybercrime.

Also associated with this proposal is a mandatory reporting requirement for organizations that manage more than 10,000 pieces of PII in a twelve-month period, or who provide critical infrastructure. Critical infrastructure is a very broad definition and includes financial services, utility, healthcare, as well as other industries. Please join me in Miami, as we present and discuss the proposal and its impact on private industry. I hope you can join us.

Exploring The Invisible Internet

John Kindervag

At Forrester's Security Forum 2011 in Miami, November 9-10, we will be reprising the wildly successful "Hackers Vs. Executives" track session. There will be two leading security professionals sitting on the panel representing the executive viewpoint, and they will be joined on stage by two noted researchers who will provide a hacker's-eye for this session. Rodney Joffe of Neustar will give us a live guided tour of the “Invisible Internet” – the IRC chat rooms and carder forums where the underground cybercrime economy lives.  Michael Hamelin of Tufin Technologies – a noted white hat hacker and multiple winner of the DefCon “Capture the Flag” competition – will do another demo to help us understand how attacks work. We will then turn to our panelist representing the executive viewpoint to start an interactive discussion about current and future threats and how best to understand them and protect against them.

Last year this session was packed. It was highly interactive with lots of provocative questions coming from the audience. I encourage you to join us in Miami, November 10th from 11:35 a.m. to 12:20 p.m. for this unique and informative presentation.

Go to the security forum website for more information. Hope to see you there!

The Content Security Forecast Calls For Clouds

Rick Holland

I am very excited to introduce my first Forrester report, "The Content Security Forecast Calls For Clouds."  I wrote the report to help guide your strategy on SaaS based email and web content security.  During my inquiries, I am frequently asked about content security in the cloud:

  • "Is web SaaS mature enough for enterprises?"
  • "Will SaaS help secure my mobile and remote users?" 
  • "What about the hybrid model?"
  • "What are other organizations doing?" 

In the report, I take a closer look at these questions, and I also address the benefits and challenges associated with the SaaS model.  I leave you with multiple deployment options and specific recommendations for your journey to the cloud.  If you have questions or comments please let me know, I would love to hear from you. 

Protecting The Extended Enterprise

Laura Koetzle

“To succeed, Security & Risk leaders need to be part of the business strategy.” If I had a nickel for every time I’ve heard someone give some variation on that piece of advice, I’d be rich. As you all know, that’s an easy thing to say but a difficult thing to do. And that’s particularly true now, because our business leaders today are prioritizing growth – they’re entering new markets and releasing new products and services to grow revenue. Your business will unleash the creativity of its entire extended enterprise ecosystem – employees, partners, suppliers, and current customers – to find new ways to win and serve new customers. And your extended enterprise will connect via mobile and social applications and use cloud services. 

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Compliance And Cloud – Responsible Or Accountable?

Andrew Rose

It’s interesting how many threads there are on the Internet that still debate the difference between these two words: “responsible” and “accountable.” Oddly enough, today I stumbled across two definitions, from seemingly respectable sources, that hold diametrically opposite views! To me, the answer is simple – you can delegate responsibility, but accountability remains fixed.

This is a key point in the extended enterprises in which we now function. Firms are now made up of a myriad of offshore and outsourced services, running on systems that are similarly fragmented and distributed across vendors. This complex tangle of people and data represents a huge challenge to the CISO, who remains accountable for the security, and often the compliance, of his employer yet is no longer responsible for their provision.

With a methodical and comprehensive process and a surfeit of resource (please stop laughing at the back!), the CISO does, however, have the ability to follow the data trails and manage risk down in this regard. Unfortunately, with the advent of cloud, things are taking a turn for the worse. Cloud vendors are reluctant to be scrutinized, and the security and compliance demands of the CISO can often go unanswered. If cloud really is to be a mainstay of computing in the future, something has to give – we need to find a balance where compliance and security assurance requirements are met without fatally undermining the cloud model. This is a key topic for 2012 and something we’ll be following with interest.  

As security professionals, we remain accountable for resolving these issues, no matter how much responsibility has been pushed to third parties and cloud vendors. So, how do you minimize the workload involved in managing the third parties that make up your extended enterprise, and how do you gain assurance around cloud vendors?

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Are Your Risk Management Efforts Enabling Partnership Opportunities?

Chris McClean

Forrester's Security and Risk Management clients often describe the frustration they feel when they are not included in important initiatives until after decisions have been made. Lately, this situation has been especially pronounced among decisions to enter partnership agreements based on service, performance, and cost considerations... with risk management only brought in later to identify and mitigate potential points of exposure.

At the same time, Forrester's Sourcing and Vendor Management professionals find themselves facing their own challenges when it comes to managing the risk of partner relationships. In a Q3, 2011 suvey of 575 Sourcing and Vendor Management professionals, top concerns related at "X-as-a-service" relationships included the lack of recourse if a vendor fails or goes out of business, the lack of a clear way to assess risk of a third party, and inability to manage how providers are handling data. ( Source: Forrsights Services Survey, Q3 2011)

In order to bridge this gap, Security and Risk Management professionals need to deliver a streamlined way to insert risk identification, analysis, and evaluation steps within their organization's existing vendor management lifecycle. Forrester customers who have taken this approach - for example, by introducing short, 10-15 question surveys to determine whether more detailed vendor risk assessments are warranted - report better oversight of vendor risk and better involvement in the decision making process. In some cases, Security and Risk Management professionals have even reported casting a decisive thumbs-down vote to block a new vendor contract because it represents unacceptable risk.

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What’s Holding CISOs Back?

Stephanie Balaouras

According to our survey data dating back to 2008, despite year after year of high profile security breaches from Heartland Payment Systems to Wikileaks to Sony, security budgets have only increased by single digits. This is hardly enough to keep up with the increasing sophistication of attacks, the avalanche of breach notification laws and the changing business and IT environment.

The changing business and IT environment is perhaps the greatest concern. With a massive explosion of mobile devices and other endpoint form factors and an ever expanding ecosystem of customers, partners, clouds, service providers and supply chains, you increasingly have less and less direct control over your data, your applications and end-user identities. We refer to this expanding ecosystem as the “extended enterprise.” An extended enterprise is one for which, a business function is rarely, if ever, a self-contained workflow within the infrastructure boundaries of the company. We believe that the extended enterprise is such a major shift for CISOs and security professionals that we dedicated our upcoming Security Forum to it as well as a significant stream of research.

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IBM To Acquire Algorithmics... GRC And Financial Risk Management Get A Little Closer

Chris McClean

Today IBM announced plans to acquire the Fitch Group’s Algorithmics, a heavy-hitter in financial risk management software and services market, for $387 million.

 Here are my initial thoughts about today’s announcement:

  • IBM is making a (relatively safe) bet that operational and financial risk functions will continue to comes together. Regulatory pressures from Basel III, Dodd-Frank, and Solvency II, as well as the competitive realities of the global market, are pushing for banks and insurance companies to have more comprehensive oversight of exposure across all domains of risk. In fact, analytics should be a top priority of any compliance program. It will be some time before IBM (or any other vendor) can deliver a single platform to manage operational, credit, market, liquidity, etc. in one place; however, the addition of Algo’s subject matter expertise and even basic integration of data for a single source of reporting offers customers attractive benefits.
  • IBM still faces heavy competition in financial services for both operational risk with its OpenPages product and financial risk with its new Algo offerings... however. there are very few significant competitors that have strength in both. IBM’s announcement today was a strong move against these other few, most notably Oracle and SAS.
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Is CyberLiability Insurance Becoming A More Feasible Risk Management Strategy?

Andrew Rose

The cyberinsurance market today represents only a tiny segment of the overall insurance industry, and a recent Forrester paper on the topic identified that only a very small percentage of organizations that have purchased business insurance have also purchased cyberinsurance. Many insurance companies, however, are now estimating a period of significant growth in this area, and recent conversations suggest that more companies are either interested in this coverage or have recently purchased such policies.

I'm interested to know where your organization sits on this topic. If you have a minute, please respond to our short poll on the topic

You can find the poll in the right column of this page, below the “About the Analyst” or “About this Blog” section.

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7/22 UPDATE - An interesting story which seems to suggest that Sony may be trying to leverage cover from existing 'traditional' insurance policies to cover for recent cyber-losses, much to the annoyance of the insurer... http://www.theregister.co.uk/2011/07/22/sony_breach_insurance/

In the unlikely event that Sony do manage to get the insurer to pay, that would be an interesting development for the future of cyberliability insurance...

InfoSec In The Supply Chain

Andrew Rose

The importance of data security throughout the supply chain is something we have all considered, but Greg Schaffer, acting deputy undersecretary of the Homeland Security Department of the National Protection and Programs directorate at the Department of Homeland Security, recently acknowledged finding instances where vulnerabilities and backdoors have been deliberately placed into hardware and software. This is not a risk that hasn’t been previously pondered as, in 1995, we watched Sandra Bullock star in ‘The Net," and address this very issue. However the startling realism of Mr. Schaffer’s admission means that it can no longer be categorized as a "hollywood hacking" or a future risk.

The potential impact of such backdoors here is terrifying and it is easy to imagine crucial response systems being remotely disabled at critical points in the name of financial or political advantage.

If we are dedicated to the security of our data, we must consider how to transform our due diligence process for any new product or service. How much trust can we put in any technology solution where many of the components originate from lowest cost providers situated in territories recognized to have an interest in overseas corporate secrets? We stand a chance of finding a keylogger when it’s inserted as malware, but if it’s built into the chipset on your laptop, that’s an entirely different challenge… Do we, as a security community, react to this and change our behavior now? Or do we wait until the risk becomes more apparent and widely documented? Even then, how do we counter this threat without blowing our whole annual budget on penetration testing for every tiny component and sub-routine? Where is the pragmatic line here?

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