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Page 1 Robert Garigue VP and Chief Information Security Officer Controlling Order and Disorder The evolving role of the CISO within the new structures.

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Presentation on theme: "Page 1 Robert Garigue VP and Chief Information Security Officer Controlling Order and Disorder The evolving role of the CISO within the new structures."— Presentation transcript:

1 Page 1 Robert Garigue VP and Chief Information Security Officer Controlling Order and Disorder The evolving role of the CISO within the new structures of Information Systems

2 Page 2 Outline of our expedition Background and Analysis Frameworks – Business models – The nature of the threats The strategic information security framework –Environmental factors –Information security processes Evolution of information security functions –Alignment and Integration challenges –Emerging new risks and concerns Reflections on the nature and evolving role of the Chief Information Security Officer Travels in a foreign land

3 Page 3 BMO Financial Group Founded in 1817 – First Canadian Bank Highly diversified financial institution –retail banking –wealth management –investment banking Assets of $256 billion at October 31, ,000 employees Strong presence in US Mid-West through Harris Bankcorp Overseas offices around the world

4 Page 4 Metrics of the Digital BMO 200+ Mainframes 276+ Open System Business Critical Applications Desktops 2500 support servers 6000 main network devices 165 Terabytes of data storage 50%+ a year Several Million Transactions/sec

5 Page 5 Myths and Realities For some the world is a multidimensional place …and for other… it is still flat… There are always Myths and Realities.

6 Page 6 An evolving organizational context : Information Society Some of the New Realities: Information based productivity Computer mediated decisions Rise of the knowledge worker Network centric structures and value chains Command and Control hierarchies are displaced by Cooperative, Commutative and Coordinated organizations a burden shared is a burden halved.. an intellectual asset shared is one doubled

7 Page 7 The Integrated Informational Value-Chain Linked Complementary Interdependent Linked Complementary Interdependent From Goods or Services To Goods with Services From Goods or Services To Goods with Services

8 Page 8 Information Flows : Health Care Ecosystem

9 Page 9 Physical Process The impact will be felt in the three realms of cyberspace Content

10 Page 10 The Evolution of the Noosphere (Teilhard de Chardin ) Mobile and Peer to Peer Client Server Main Frame focus Organizations (command and control) Individuals (cooperation, coordination, and communication) Ubiquitous Trusted Affective Advisory Always on Social

11 Page 11 It is full of Risk: These are the shape of Things Now Dead

12 Page 12 But there will always be conflict between Open systems and Closed systems…. Violent conflict … Pablo Picasso. Guernica Oil on canvas. Museo del Prado, Madrid, Spain

13 Page 13 Zero-day virus Slammer – 30 minutes later

14 Page 14 Information Security: A new oxymoron Information Security The debate

15 Page 15 Arguments For Getting Funding : Levels of Maturity of the Organization Fear, Uncertainty and Despair: The Hackers, virus, will get us unless.. The Heard Mentality: The king needs Taxes… The Analytical ROI ? Investment in Intrusion Prevention Systems are better than… Arguments that have yet to come: Because we can take on more business and manage more risks (brakes enable cars can go faster)

16 Page 16 Information Security – Managing Expectations Sometimes it is just a communication issue…

17 Page 17 Consequence A: Information Security Officer as The Jester Sees a lot Can tell the king he has no clothes Can tell the king he really is ugly Does not get killed by the king Nice to have around but…how much security improvement comes from this ?

18 Page 18 Consequence B: Information Security Officer as Road Kill Changes happened faster that he was able to move Did not read the signs Good intentions went unfulfilled A brutal way to ending a promising career Sad to have around but…how much security improvement comes from this ?

19 Page 19 Maybe a better model for CISO: Charlemagne King of the Franks and Holy Roman Emperor; conqueror of the Lombards and Saxons ( ) - reunited much of Europe after the Dark Ages. He set up other schools, opening them to peasant boys as well as nobles. Charlemagne never stopped studying. He brought an English monk, Alcuin, and other scholars to his court - encouraging the development of a standard script. He set up money standards to encourage commerce, tried to build a Rhine-Danube canal, and urged better farming methods. He especially worked to spread education and Christianity in every class of people. He relied on Counts, Margraves and Missi Domini to help him. Margraves - Guard the frontier districts of the empire. Margraves retained, within their own jurisdictions, the authority of dukes in the feudal arm of the empire. Missi Domini - Messengers of the King.

20 Page 20 Knowledge of risky things is of strategic value How to know today tomorrows unknown ? How to structure information security processes in an organization so as to identify and address the NEXT categories of risks ? This is the mandate of information security.

21 Page 21 The Interconnected Societies: the critical Infrastructure TELECOM SERVICES LAYER TRANSPORT SERVICES LAYER TERRAIN LAYER FEATURE LAYER PHYSICAL BACKBONE LAYER GEOGRAPHICAL MAP LAYER OPERATIONS LAYER TECHNICAL APLICATION LAYER CONTROL LAYER (Geo-political boundaries) (Elevation) (Land Use, Cities, Buildings, Towers) (Cables, Fiber Routes, Satellites) (SONET Rings, ATM, PSTN) (Internet, Data, Voice, Fax) Sector Dependent Layers Common Layers TELECOM UTILITIES Billing & Resource Planning Load Balancing Reliability SS7 SCADA Billing & Resource Planning FINANCIAL Billing & Payment Internet Banking Financial Services Utilities Stock / Financial Exchanges POS Terminals ATMs GOV HEALTH CARE Billing Administration Diagnostics Electronic Records Hospitals Labs & Clinics Pharmacies HL7 LAYERS Legislation Taxation Law - Order Secure channels Prov, and Fed Services Grid / Pipeline Monitoring & Control

22 Page 22 Indicators and warnings External environment : the rates of evolutions –16 new malware products launched every day: viruses, worms, trojan horses, spyware etc –7 new vulnerabilities discovered every day –20 minutes guaranty –Probes against Financial Institutions web sites launched every 6 seconds –Social engineering is on the rise: People are the weak link –16 new malware products launched every day: viruses, worms, trojan horses, spyware etc –7 new vulnerabilities discovered every day –20 minutes guaranty –Probes against Financial Institutions web sites launched every 6 seconds –Social engineering is on the rise: People are the weak link Hackers Script kiddies Industrial espionage Cyber-terrorists, Competitors Suppliers

23 Page 23 Indicators and warnings : Threats and targets The McKinsey Quarterly, 2002 Number 2 Risk and resilience Daniel F. Lohmeyer, Jim McCrory, and Sofya Pogreb

24 Page 24 Manufacturing exploits: The electronic Petrie Dish Malware : spyware + trojan + spam + exploits + social engineering

25 Page 25 Indicators and warnings How money was lost – Rough order of magnitude (ROM) Source: CFI/FBI Report US based corporations, government and educ. inst.

26 Page 26 Identity Theft in Canada

27 Page 27 Hacking Beliefs Identity Theft –One of the fastest growing crimes. Statistics Canada reports 13,359 cases, $21.5 million losses in 2003 –Account takeover (credit cards, bank accounts) –Application fraud (open new accounts with victims ID) –Industry needs improved identity management solutions and strong public awareness Phishing (using scams to collect confidential information) –Key issues: detection, shutting down bogus sites, customer awareness –Banks are posting warnings on their public sites, and updating security page information with Q&A type of information.

28 Page 28 Emergent Complexity : Spam Space as Risk

29 Page 29 Structuring Risks An Organizational Risk Categorization Taxonomy

30 Page 30 Structuring Risks Regulatory Environment: where are the controls ? –Personal Information Protection and Electronic Documents Act (PIPEDA) - Canada –Gramm-Leach-Bliley Financial Services Modernization Act (GLBA) - U.S –California Law SB California –HIPPA (Health) –Office of the Superintendent of Financial Institutions (OSFI) – Canada - Guideline B10 –The Financial Services Authority (FSA) – England - OS Section 4 –Federal Financial Institutions Examination Council (FFIEC) - U. S. –Office of the Comptroller of the Currency (OCC) - U.S. OCC –The Bank Act - OSFI – Canada – Guidelines B6, B7, B10 –Federal Financial Institutions Examination Council (FFIEC) - U.S. SP-5 Policy –Sarbanes- Oxley Act (SOX) - U.S. –Bill Canada –SEC Rule 17a-4 –Basel II Accord –European Union Directives on Information Security –Canadas National Security Program –Patriot Act - US Privacy Security

31 Page 31 Regulatory Penalties & Fines Grid Name of Regulatory Mandate Some Potential PenaltiesPotential Fines SOA20 years in prison$15 million Basel IIRegulatory agency penalties: vary by G-20 country Regulatory agency fines: vary by G-20 country HIPAA10 years in prison$250,000 GLBA10 years in prison$1 million Patriot Act20 years in prison$1 million Dod Failure to qualify for DoD contract; Contract breach; FAR penalties Contract penalties California SB 1386Unfair trade practice law penalties: vary by state Private civil and class actions; unfair trade practice law fines: vary by state SEC Rule 17a-4Suspension/expulsion$1 million+

32 Page 32 Emergent Behaviors: An Ecological View of Organizational Risk The information infrastructur e The market Drivers projects Governance bodies Inet, Ipt, ARB, etc Governance bodies Inet, Ipt, ARB, etc threats laws practices standards priorities resources compliance outsourcing Risk mangt Risk mangt Education awareness Education awareness reviews audit Capital AtRisk Capital AtRisk RCSA Lob RISK officers Lob RISK officers Access mangt Access mangt Certificates Crypto policy Crypto policy Identity mangt Identity mangt IPC Alerts Vulner. Analysis Vulner. Analysis escalations Data Classif. Data Classif. Active Information Security Strategy Active Information Security Strategy Network Security Council Network Security Council Tech Residual Risks Tech Residual Risks -+ Organizational accumulated technical residual risk = Tech Residual Risks Tech Residual Risks Environment New Technology New Technology

33 Page 33 Information Security organization as result of the knowledge transfer process The Knowledge Transfer Cycle Technical Threats PassiveReal time High Organizational Complexity/Capability Low Virtual Private Networks Firewalls Virus Scanners Intrusion Detection Monitoring Vulnerability Analysis Real Time Response Role base identity Access management Digital Rights Management Security Functions

34 Page 34 Knowledge transfer The Knowledge Transfer Cycle 2 BMO IS CBA FI CIRT & other Banks Vendors FIRST Projects PSECP CANCERT Clients and Businesses wireless Info/infra structure Utilities Health Telecom Knowledge networks PassiveReal time High Organizational Complexity/Capability Low Virtual Private Networks Firewalls Virus Scanners Intrusion Detection Monitoring Vulnerability Analysis Real Time Response Role base identity Access management Digital Rights Management Security Functions

35 Page 35 Network Protection Operating System Protection User Access Control and Authorization Object Integrity Content Certification Digital Signatures Control Framework is a hierarchy of accountability structures Privacy Security Business Applications Clients/Users Operational Support Content control Access Management Perimeter Protection Infra structure Info structure

36 Page 36 Information Security Management Framework RISK/COST STRATEGIC RISK LEVEL: LOW TACTICAL RISK LEVEL: MEDIUM OPERATIONAL RISK LEVEL: HIGH Business Requirements Design Development Implementation Operations STRATEGIC Governance and policies Policies Standards Procedures Guidelines Awareness Research TACTICAL Application/system development and deployment Design reviews IS solutions Due care Risk acceptance New technology insertion OPERATONAL Active security posture Antivirus management Vulnerability assessments Intrusion detection Incident response OPERATONAL IS services Access management Key management Security token management Other operational services Risk curves

37 Page 37 Information Security Key Performance Indicators Policy –Number of Policy Exceptions –Number of Risk Acceptances –Value of Residual Risk Process –Number of security issues in new projects –Number of ID accounts (active/dead) –Number of keys / digital certificates / tokens –Time to respond to patches, incidents –Losses due to security incidents People –Number of certified personnel –Overall capital investment ratio security to IT spend per system per person per incident Tycho Brahe ( )

38 Page 38 Information Security Key Performance Metrics

39 Page 39 Microsoft Patch Deployment HML H EmergencyAccelerated M Normal L AcceleratedNormal Note: April 2004 release required 4 separate patches

40 Page 40 Active security posture – Vulnerability Analysis results CWAN Capital MarketsNesbitt Burns

41 Page 41 Quarterly Information Security Dashboard = unsatisfactory = fully satisfactory =positive trend =negative trend =stable =Key Issues Legend

42 Page 42 Making The Case for Security Investments Return on Investment (ROI) has failed to demonstrate it economically because there are too many variables –Benefits hard to quantify: whats the value of good health? –Statistical data unreliable and changing fast –Cost avoidance not the same as cost savings –The language divide: accounting vs. security –Loss of credibility more costly than loss of physical assets –Technology substitution is not a guaranty of more capability Total Security costs Incidents Costs Security Investments ?

43 Page 43 The Security Challenge: Alignment Project assessment The Digital Divide Two solitudes, in virtual isolation Security servicesIT processes Anti-Virus Patches Vulnerability Assessments Incident management Intrusion detection Application security Access management Key management Application development Architecture Problem management Incident management Change management Service level Configuration Firewall rules Capacity Availability IT Service continuity

44 Page 44 Phase Description 1. Initiation 2. Awareness 3. Control 4. Integration 5. Optimization Concrete evidence of development Resources allocated Formalized Synergy between processes Continuous self improvement & optimization 0. Absence Nothing present Characteristics: visible results management reports task/authorities defined active rather than reactive documentation formal planning Maturity Framework Levels: Stages of Evolution of a system

45 Page 45 Maturity Frameworks pedigree : The reference framework It is better not to proceed at all than to proceed without method Descartes

46 Page 46 Information Security Maturity model - ISO Information Technology Infrastructure Library (ITIL) SEI – CMM (Capability Maturity Model)

47 Page 47 A proposal for a new integrated risk framework The objective is to lower the overall risk through capability maturity framework integration Bus. Req.DesignDevelopmentOperationsImplementation ITILSEI CMMISO ProjectISO Risk Management through Maturity Framework alignment Organizational focus ?

48 Page 48 Strategic Evolution of Information Security IP level Protocol aware Perimeter based Closed API Limited to # of User Single Admin Simple Provisioning Node Based Heterogeneous Island of security Under-maintained Packet Level Integrity Closed Business systems Perimeter Control XML Based Application Control Content Aware Higher value Accessible API Many Users Multiple connections Cross organization access Integrated Network View Consistent Policies Tiered Administration Remote monitoring and management Application Level Assurances Integrated Business Systems Managed Security Services Present Security Model Target Security Model

49 Page 49 The new Information Security challenge: Managing the Roles and Content via Rights and Privileges Number of Digital IDs Applications Mainframe Client Server Internet BusinessAutomation Company(B2E) Partners(B2B) Customers(B2C) Mobility Growth of unstructured Documents ROLES CONTENT

50 Page 50 Information centric organization Content increasingly easy to collect and digitize Has increasing importance in products and services Is very hard to value or price Has a decreasing half life Has increasing risk exposure –integrity-quality –regulation privacy/SOX Is a significant expense in all enterprises (IT Governance – Weill and Ross) Michael C. Daconta

51 Page 51 Where are the risk coming from the rise of the info-structure Where is the locus of control outside the boundaries of the organization ? Information Security Management has to recognize a requirement for a content control model that is independent from a specific technical solution. To deal with the new information security risks in semantics management Then the focus to content management and issues: Topic Maps, XML, RDF, UDDI, XBRL, SAML, Ontologies, And more and more XML Infostructure: Content Policy: Rules Infrastructure: Technology Tag/ CONTENT /tag

52 Page 52 The Integrated Architecture : Content and Technology Web Server WebPDACell Content Management System Provisioning Engine Static Content Style Sheets Syndication Server Data Server Profiles Rights and Privileges Rules Application Request and User ID /password Customized XML Docs/Info Content requestContent response

53 Page 53 The Architecture of the Infostructure The Ontology of Information Management Risk Assessment Content Classification Sensitivity Business Applications Roles XML Topic Maps RDF UDDI XBRL Rule Mapping From Policies to XML Offerings Resources Transactions References Locations Policy and regulations Directions Contracts Finances Markets Quality Of Service ROI on Intellectual Capital Knowledge Life cycleInformation QualityData SOA Peer to Peer Groupware Taxonomies Syntax Organizations Outcomes E-Content Life Cycle Management Process Policies Standards NetBiz RosetaNet Architecture

54 Page 54 Information Management as Information Security NEW IMPERATIVES Data Classification Information stewards Content lifecycle management Identity Management Digital Rights Management Services NEW IMPERATIVES Data Classification Information stewards Content lifecycle management Identity Management Digital Rights Management Services

55 Page 55 Reports to HR Reporting Hierarchy HR Reporting Hierarchy Position Hierarchy Position Hierarchy Employee Non- Employee Non- Employee Actual Target Actual Target Individual Application User ID Application User ID Org Unit / Location Org Unit / Location Standard Target Standard Target Position Role CPM Role Group CPM Role Group Individual Position Individual Position Provision Role Group Provision Role Group User Interface (Desktop) User Interface (Desktop) Application System Application System Is a Activity Occupies Requires Identifies access needs of role EnID Maps to Is needed to access Has a Is part of Generates Has a Updates Targets are based on Is part of Is at a Includes Right / Privilege Right / Privilege Enterprise Asset Enterprise Asset Is Granted Is a Applies to The New Audit Space Control of Content : Digital Rights Management

56 Page 56 The next level of challenge Aligning the Infostructure with the Infrastructure Daconta Passive Real time High Organizational Complexity/Capability Low Virtual Private Networks Firewalls Virus Scanners Intrusion Detection Monitoring Vulnerability Analysis Real Time Response Role base identity Access management Digital Rights Management Security Functions Infrastructure Architecture Infostructure Architecture XML Firewalls Semantic Management Content Management

57 Page 57 The New Security Debate Space The B2B market forces are enabling standards. –B2B models –Taxonomies and ontologies –XML Protocols –WS-Security standards What protocol and standards drive your business ? Do you have an Information Security Officer debating these issues ?

58 Page 58 The Role of the Chief Information Security Officer 1.Information Risk identification 2.Information Risk formalization 3.Development of practices and tools 4.Integrate root cause analysis into governance framework 5.Devolve processes from exception management into operations 6.Improve Information asset identification and management accountability

59 Page 59 The Dynamics of Systems Changes "There is no problem so complicated that you can't find a very simple answer to it if you look at it the right way." -- Douglas Adams The key to progress is the process of feedback in its most simple form, two-way communication. Pink Floyd Norbert Wiener

60 Page 60 Social Engineering … at its best…

61 Page 61 The future of information security is bright.. Become a CISO and survive

62 Page 62 Colophon

63 Page 63 Thank you


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