10.1 © 2006 by Prentice Hall 10 Chapter Security and Control

10.2 © 2006 by Prentice Hall OBJECTIVES Explain why information systems need special protection from destruction, error, and abuse Assess the business value of security and control Evaluate elements of an organizational and managerial framework for security and control Management Information Systems Chapter 10 Security and Control

10.3 © 2006 by Prentice Hall Evaluate the most important tools and technologies for safeguarding information resources Identify the challenges posed by information systems security and control and management solutions OBJECTIVES (Continued) Management Information Systems Chapter 10 Security and Control

10.4 © 2006 by Prentice Hall Challenge: provide network and infrastructure security to a financial services firm in a Web-enabled high-threat environment Solutions: outsource to a well-known security firm the task of providing 24 x 7 network and infrastructure monitoring and reporting Real-time security monitoring 24 x 7, best practices, online security portal, data mining of network transactions Illustrates the role of system and network security in providing customers with service and managing corporate risk in online environments Management Information Systems Chapter 10 Security and Control Wesfarmers Limited Case

10.5 © 2006 by Prentice Hall SYSTEM VULNERABILITY AND ABUSE Why Systems Are Vulnerable Management Information Systems Chapter 10 Security and Control Contemporary Security Challenges and Vulnerabilities Figure 10-1

10.6 © 2006 by Prentice Hall Use of fixed Internet addresses through use of cable modems or DSL Lack of encryption with most Voice over IP (VoIP) Widespread use of and instant messaging (IM) Management Information Systems Chapter 10 Security and Control SYSTEM VULNERABILITY AND ABUSE Internet Vulnerabilities: Why Systems Are Vulnerable (Continued)

10.7 © 2006 by Prentice Hall Radio frequency bands are easy to scan The service set identifiers (SSID) identifying the access points broadcast multiple times Management Information Systems Chapter 10 Security and Control SYSTEM VULNERABILITY AND ABUSE Wireless Security Challenges:

10.8 © 2006 by Prentice Hall SYSTEM VULNERABILITY AND ABUSE Wi-Fi Security Challenges Management Information Systems Chapter 10 Security and Control Figure 10-2

10.9 © 2006 by Prentice Hall Computer viruses, worms, trojan horses Spyware Spoofing and Sniffers Denial of Service (DoS) Attacks Identity theft Cyberterrorism and Cyberwarfare Vulnerabilities from internal threats (employees); software flaws Management Information Systems Chapter 10 Security and Control SYSTEM VULNERABILITY AND ABUSE Malicious Software: Viruses, Worms, Trojan Horses, and Spyware Hackers and Cybervandalism

10.10 © 2006 by Prentice Hall SYSTEM VULNERABILITY AND ABUSE Worldwide Damage from Digital Attacks Management Information Systems Chapter 10 Security and Control Figure 10-3

10.11 © 2006 by Prentice Hall Inadequate security and control may create serious legal liability. Businesses must protect not only their own information assets but also those of customers, employees, and business partners. Failure to do so can lead to costly litigation for data exposure or theft. A sound security and control framework that protects business information assets can thus produce a high return on investment. Management Information Systems Chapter 10 Security and Control BUSINESS VALUE OF SECURITY AND CONTROL

10.12 © 2006 by Prentice Hall Security Incidents Continue to Rise Management Information Systems Chapter 10 Security and Control BUSINESS VALUE OF SECURITY AND CONTROL Figure 10-4 Source: CERT Coordination Center, accessed July 6,

10.13 © 2006 by Prentice Hall Management Information Systems Chapter 10 Security and Control BUSINESS VALUE OF SECURITY AND CONTROL Legal and Regulatory Requirements for Electronic Records Management Electronic Records Management (ERM): Policies, procedures and tools for managing the retention, destruction, and storage of electronic records

10.14 © 2006 by Prentice Hall Management Information Systems Chapter 10 Security and Control BUSINESS VALUE OF SECURITY AND CONTROL Data Security and Control Laws: The Health Insurance Portability and Accountability Act (HIPAA) Gramm-Leach-Bliley Act Sarbanes-Oxley Act of 2002

10.15 © 2006 by Prentice Hall Electronic Evidence: Computer data stored on disks and drives, , instant messages, and e- commerce transactions Computer Forensics: Scientific collection, examination, authentication, preservation, and analysis of computer data for use as evidence in a court of law Management Information Systems Chapter 10 Security and Control BUSINESS VALUE OF SECURITY AND CONTROL Electronic Evidence and Computer Forensics

10.16 © 2006 by Prentice Hall General controls: Software and hardware Computer operations Data security Systems implementation process Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Types of Information Systems Controls

10.17 © 2006 by Prentice Hall Input Processing Output Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Application controls:

10.18 © 2006 by Prentice Hall Determines the level of risk to the firm if a specific activity or process is not properly controlled Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Risk Assessment:

10.19 © 2006 by Prentice Hall Acceptable Use Policy (AUP) Authorization policies Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Security Policy: Policy ranking information risks, identifying acceptable security goals, and identifying the mechanisms for achieving these goals

10.20 © 2006 by Prentice Hall Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Security Profiles for a Personnel System Figure 10-5

10.21 © 2006 by Prentice Hall Downtime: Period of time in which a system is not operational Fault-tolerant computer systems: Redundant hardware, software, and power supply components to provide continuous, uninterrupted service High-availability computing: Designing to maximize application and system availability Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Ensuring Business Continuity

10.22 © 2006 by Prentice Hall Load balancing: Distributes access requests across multiple servers Mirroring: Backup server that duplicates processes on primary server Recovery-oriented computing: Designing computing systems to recover more rapidly from mishaps Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Ensuring Business Continuity (Continued)

10.23 © 2006 by Prentice Hall Disaster recovery planning: Plans for restoration of computing and communications disrupted by an event such as an earthquake, flood, or terrorist attack Business continuity planning: Plans for handling mission-critical functions if systems go down Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Ensuring Business Continuity (Continued)

10.24 © 2006 by Prentice Hall MIS audit: Identifies all of the controls that govern individual information systems and assesses their effectiveness Security audits: Review technologies, procedures, documentation, training, and personnel Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Auditing:

10.25 © 2006 by Prentice Hall Management Information Systems Chapter 10 Security and Control ESTABLISHING A MANAGEMENT FRAMEWORK FOR SECURITY AND CONTROL Sample Auditor’s List of Control Weaknesses Figure 10-6

10.26 © 2006 by Prentice Hall Management Information Systems Chapter 10 Security and Control TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL Access Control Passwords Authentication: Access control: Consists of all the policies and procedures a company uses to prevent improper access to systems by unauthorized insiders and outsiders Tokens, smart cards Biometric authentication

10.27 © 2006 by Prentice Hall Firewalls: Hardware and software controlling flow of incoming and outgoing network traffic Intrusion detection systems: Full-time monitoring tools placed at the most vulnerable points of corporate networks to detect and deter intruders Management Information Systems Chapter 10 Security and Control TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL Firewalls, Intrusion Detection Systems, and Antivirus Software

10.28 © 2006 by Prentice Hall Antivirus software: Software that checks computer systems and drives for the presence of computer viruses and can eliminate the virus from the infected area Wi-Fi Protected Access specification Management Information Systems Chapter 10 Security and Control TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL Firewalls, Intrusion Detection Systems, and Antivirus Software (Continued)

10.29 © 2006 by Prentice Hall Management Information Systems Chapter 10 Security and Control TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL A Corporate Firewall Figure 10-7

10.30 © 2006 by Prentice Hall Public key encryption: Uses two different keys, one private and one public. The keys are mathematically related so that data encrypted with one key can be decrypted using only the other key Message integrity: The ability to be certain that the message being sent arrives at the proper destination without being copied or changed Management Information Systems Chapter 10 Security and Control TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL Encryption and Public Key Infrastructure

10.31 © 2006 by Prentice Hall Digital signature: A digital code attached to an electronically transmitted message that is used to verify the origin and contents of a message Digital certificates: Data files used to establish the identity of users and electronic assets for protection of online transactions Public Key Infrastructure (PKI): Use of public key cryptography working with a certificate authority Management Information Systems Chapter 10 Security and Control TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL Encryption and Public Key Infrastructure (Continued)

10.32 © 2006 by Prentice Hall Secure Sockets Layer (SSL) and its successor Transport Layer Security (TLS): protocols for secure information transfer over the Internet; enable client and server computer encryption and decryption activities as they communicate during a secure Web session. Secure Hypertext Transfer Protocol (S-HTTP): used for encrypting data flowing over the Internet; limited to Web documents, whereas SSL and TLS encrypt all data being passed between client and server. Management Information Systems Chapter 10 Security and Control TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL Encryption and Public Key Infrastructure (Continued)

10.33 © 2006 by Prentice Hall Management Information Systems Chapter 10 Security and Control TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL Public Key Encryption Figure 10-8

10.34 © 2006 by Prentice Hall Management Information Systems Chapter 10 Security and Control TECHNOLOGIES AND TOOLS FOR SECURITY AND CONTROL Digital Certificates Figure 10-9

10.35 © 2006 by Prentice Hall Management Information Systems Chapter 10 Security and Control MANAGEMENT OPPORTUNITIES, CHALLENGES AND SOLUTIONS Management Opportunities: Creation of secure, reliable Web sites and systems that can support e-commerce and e-business strategies

10.36 © 2006 by Prentice Hall Designing systems that are neither overcontrolled nor undercontrolled Implementing an effective security policy Management Information Systems Chapter 10 Security and Control MANAGEMENT OPPORTUNITIES, CHALLENGES AND SOLUTIONS Management Challenges:

10.37 © 2006 by Prentice Hall Security and control must become a more visible and explicit priority and area of information systems investment. Support and commitment from top management is required to show that security is indeed a corporate priority and vital to all aspects of the business. Security and control should be the responsibility of everyone in the organization. Management Information Systems Chapter 10 Security and Control MANAGEMENT OPPORTUNITIES, CHALLENGES AND SOLUTIONS Solution Guidelines: