Risks, Controls and Security Measures Chapter 17 Risks, Controls and Security Measures

Learning Objectives When you finish this chapter, you will: Be able to identify the main types of risks to information systems. List various types of attacks on networked systems Identify types of controls required to ensure the integrity of data entry and processing and uninterrupted e-commerce.

Learning Objectives Know the principles of how organizations develop recovery plans. Be able to explain the economic aspects of pursuing information security.

Why do we care? Nearly 20,000 digital attacks* occurred in January 2003 At this rate, we could see 180,000 attacks resulting in $80-100 billion in damages *mi2g Ltd., a digital risk management firm.

Goals of Information Security Reduce the risk of systems and organizations ceasing operations Maintain information confidentiality Ensure the integrity and reliability of data resources Ensure uninterrupted availability of data resources and online operations Ensure compliance with national security laws and privacy policies and laws

Risks to Information Systems Causes of systems downtime Number-one is hardware failure Fire and theft are the next two contributors Risks to Hardware Natural disasters Blackouts and brownouts Vandalism

Risks to Information Systems Risks to Applications and Data Theft of information Data alteration, data destruction, and defacement Computer viruses and Logic Bombs Nonmalicious mishaps

Risks to Information Systems Figure 17.2 Frequency of security breaches in a 12-month period based on a survey of 745 professionals

Risks to Online Operations Denial of Service (DoS) Too many requests are received to log on to a Web site’s pages If perpetrated from multiple computers it is called distributed denial of service (DDoS) Spoofing Deception of users to make them think they are logged on at one site while they actually are on another

Controlling Information System Risks Controls: Constraints imposed on a user or a system to secure systems against risks. Figure 17.3 Common controls to protect systems from risk

Controlling Information System Risks Program Robustness and Data Entry Controls Provide a clear and sound interface with the user Menus and limits / data input constraints Backup Periodic duplication of all data Access Controls Ensure that only authorized people can gain access to systems and files Access codes and passwords Biometric An access control unique in physical, measurable characteristic of a human being that is used to identify a person

Controlling Information System Risks Atomic Transactions Ensures that transaction data are recorded properly in all the pertinent files to ensure integrity

Controlling Information System Risks Audit Trails Built into an IS so that transactions can be traced to people, times, and authorization information

Encryption Authentication Process of ensuring that the sender and receiver of a message is indeed that person Original message – plaintext Coded message – ciphertext Messages scrambled on sending end; descramble to plain text on receiving end

Encryption Strength Figure 17.6 Estimated time needed to break encryption keys, using $100,000 worth of computer equipment

Encryption Distribution Restrictions Public Key encryption Symmetric Both sender and recipient use same key Key is referred to as secret key Asymmetric (also called public key encryption) Sender is able to communicate key to recipient before message is sent

Encryption

Encryption Secure Sockets Layer and Secure Hypertext Transport Protocol ensure online transactions are secure Pretty Good Privacy – Network Associates product that allows individuals to register for public and private keys

Digital signatures and Digital Certificates Electronic Signatures Digital Signatures Different each time you send a message Digital Certificates Computer files that serve as the equivalent of ID cards

Firewalls Software whose purpose is to manage access to computing resources Early firewalls used combination of hardware and software While firewalls are used to keep unauthorized users out, they are also used to keep unauthorized software or instructions away Computer viruses and other rogue software Proxy Servers act as a buffer between internal and external networks

Security Standards The Orange Book (DOD)- Four security levels Decision A: Verify Protection Decision B: Mandatory Protection Decision C: Discretionary Protection Decision D: Minimal Protection or No Protection The ISO Standard Common set of requirements for IT product security functions and for assurance measures during security evaluation Permits comparability between results of independent security tests

The Downside of Security Controls Security measures slow data communications and require discipline that is not easy to maintain Passwords Encryption Firewalls Drains personnel resources as well…

Chief Security Officers

Recovery Measures The Business Recovery Plan – Nine steps proposed for development Obtain management’s commitment to the plan Establish a planning committee Perform risk assessment and impact analysis Prioritize recovery needs Select a recovery plan Select vendors Develop and implement the plan Test the plan Continually test and evaluate

Recovery Measures Outsourcing the Recovery Plan Some companies may choose not to develop their own recovery plan Small companies may not be able to afford an expensive recovery plan May opt for a Web-based service

Median Amounts of IT Security Budgets by Industry

The Economic Aspect of Security Measures Two types of costs to consider when determining how much to spend on data security: The cost of potential damage The cost of implementing a preventive measure

The Economic Aspect of Security Measures Figure 17.12 The total cost to the enterprise is lowest at “Optimum.” No less, and no more, should be spent on information security measures.