14. CONTROLLING INFORMATION SYSTEMS 14. CONTROLLING INFORMATION SYSTEMS 14.1

THREATS TO INFORMATION SYSTEMS HARDWARE FAILURE, FIRE SOFTWARE FAILURE, ELECTRICAL PROBLEMS PERSONNEL ACTIONS, USER ERRORS ACCESS PENETRATION, PROGRAM CHANGES THEFT OF DATA, SERVICES, EQUIPMENT TELECOMMUNICATIONS PROBLEMS * 14.2

WHY SYSTEMS ARE VULNERABLE SYSTEM COMPLEXITYSYSTEM COMPLEXITY COMPUTERIZED PROCEDURES NOT ALWAYS READ OR AUDITEDCOMPUTERIZED PROCEDURES NOT ALWAYS READ OR AUDITED EXTENSIVE EFFECT OF DISASTEREXTENSIVE EFFECT OF DISASTER UNAUTHORIZED ACCESS POSSIBLEUNAUTHORIZED ACCESS POSSIBLE* 14.3

VULNERABILITIES RADIATION: Allows Recorders, Bugs to Tap SystemRADIATION: Allows Recorders, Bugs to Tap System CROSSTALK: Can Garble DataCROSSTALK: Can Garble Data HARDWARE: Improper Connections, Failure of Protection CircuitsHARDWARE: Improper Connections, Failure of Protection Circuits SOFTWARE: Failure of Protection Features, Access Control, Bounds ControlSOFTWARE: Failure of Protection Features, Access Control, Bounds Control FILES: Subject to Theft, Copying, Unauthorized AccessFILES: Subject to Theft, Copying, Unauthorized Access* 14.4

VULNERABILITIES USER: Identification, Authentication, Subtle Software ModificationUSER: Identification, Authentication, Subtle Software Modification PROGRAMMER: Disables Protective Features; Reveals Protective MeasuresPROGRAMMER: Disables Protective Features; Reveals Protective Measures MAINTENANCE STAFF: Disables Hardware Devices; Uses Stand-alone UtilitiesMAINTENANCE STAFF: Disables Hardware Devices; Uses Stand-alone Utilities OPERATOR: Doesn’t Notify Supervisor, Reveals Protective MeasuresOPERATOR: Doesn’t Notify Supervisor, Reveals Protective Measures* 14.5

HACKERS & COMPUTER VIRUSES HACKER: Person Gains Access to Computer for Profit, Criminal Mischief, Personal PleasureHACKER: Person Gains Access to Computer for Profit, Criminal Mischief, Personal Pleasure COMPUTER VIRUS: Rouge Program; Difficult to Detect; Spreads Rapidly; Destroys Data; Disrupts Processing & MemoryCOMPUTER VIRUS: Rouge Program; Difficult to Detect; Spreads Rapidly; Destroys Data; Disrupts Processing & Memory* 14.6

ANTIVIRUS SOFTWARE SOFTWARE TO DETECTSOFTWARE TO DETECT ELIMINATE VIRUSESELIMINATE VIRUSES ADVANCED VERSIONS RUN IN MEMORY TO PROTECT PROCESSING, GUARD AGAINST VIRUSES ON DISKS, AND ON INCOMING NETWORK FILESADVANCED VERSIONS RUN IN MEMORY TO PROTECT PROCESSING, GUARD AGAINST VIRUSES ON DISKS, AND ON INCOMING NETWORK FILES* 14.7

EFFECTS OF VIRUSES LOSS OF PRODUCTIVITY LOSS OF PRODUCTIVITY INTERFERENCE, LOCKUP INTERFERENCE, LOCKUP CORRUPTED FILES LOST DATA LOST DATA UNRELIABLE UNRELIABLE APPLICATIONS APPLICATIONS SYSTEM CRASH LOSS OF CONFIDENCE LOSS OF CONFIDENCE LOST LOST CORRUPTED CORRUPTED THREAT OF JOB LOSS THREAT OF JOB LOSS PER CENT EFFECTED BASED ON 600,000 MULTIPLE EFFECTS REPORTS Source: Computerworld (1993) 14.8

CONCERNS FOR BUILDERS & USERS DISASTER BREACH OF SECURITY ERRORS* 14.9

DISASTER LOSS OF HARDWARE, SOFTWARE, DATA BY FIRE, POWER FAILURE, FLOOD OR OTHER CALAMITYLOSS OF HARDWARE, SOFTWARE, DATA BY FIRE, POWER FAILURE, FLOOD OR OTHER CALAMITY FAULT-TOLERANT COMPUTER SYSTEMS: BACKUP SYSTEMS TO PREVENT SYSTEM FAILURE (Particularly On-line Transaction Processing) FAULT-TOLERANT COMPUTER SYSTEMS: BACKUP SYSTEMS TO PREVENT SYSTEM FAILURE (Particularly On-line Transaction Processing)* 14.10

SECURITY POLICIES, PROCEDURES, TECHNICAL MEASURES TO PREVENT UNAUTHORIZED ACCESS, ALTERATION, THEFT, PHYSICAL DAMAGE TO INFORMATION SYSTEMS POLICIES, PROCEDURES, TECHNICAL MEASURES TO PREVENT UNAUTHORIZED ACCESS, ALTERATION, THEFT, PHYSICAL DAMAGE TO INFORMATION SYSTEMS* 14.11

WHERE ERRORS OCCUR DATA PREPARATIONDATA PREPARATION TRANSMISSIONTRANSMISSION CONVERSIONCONVERSION FORM COMPLETIONFORM COMPLETION ON-LINE DATA ENTRYON-LINE DATA ENTRY KEYPUNCHING; SCANNING; OTHER INPUTSKEYPUNCHING; SCANNING; OTHER INPUTS* 14.12

WHERE ERRORS OCCUR VALIDATIONVALIDATION PROCESSING / FILE MAINTENANCEPROCESSING / FILE MAINTENANCE OUTPUTOUTPUT TRANSMISSIONTRANSMISSION DISTRIBUTIONDISTRIBUTION* 14.13

SYSTEM QUALITY PROBLEMS SOFTWARE & DATASOFTWARE & DATA BUGS: Program Code Defects or ErrorsBUGS: Program Code Defects or Errors MAINTENANCE: Modifying a System in Production Use; Can take up to 85% of Analysts’ TimeMAINTENANCE: Modifying a System in Production Use; Can take up to 85% of Analysts’ Time DATA QUALITY PROBLEMS: Finding, Correcting Errors; Costly; TediousDATA QUALITY PROBLEMS: Finding, Correcting Errors; Costly; Tedious* 14.14

COST OF ERRORS DURING SYSTEMS DEVELOPMENT CYCLE COSTS ANALYSIS PROGRAMMING POSTIMPLEMENTATION & DESIGN CONVERSION ANALYSIS PROGRAMMING POSTIMPLEMENTATION & DESIGN CONVERSION 14.15

CREATING A CONTROL ENVIRONMENT CONTROLS: Methods, Policies, Procedures to Protect Assets; Accuracy & Reliability of Records; Adherence to Management Standards CONTROLS: Methods, Policies, Procedures to Protect Assets; Accuracy & Reliability of Records; Adherence to Management Standards GENERALGENERAL APPLICATIONAPPLICATION* 14.16

GENERAL CONTROLS IMPLEMENTATION: Audit System Development to Assure Proper Control, ManagementIMPLEMENTATION: Audit System Development to Assure Proper Control, Management SOFTWARE: Ensure Security, Reliability of SoftwareSOFTWARE: Ensure Security, Reliability of Software PROGRAM SECURITY: Prevent Unauthorized Changes to ProgramsPROGRAM SECURITY: Prevent Unauthorized Changes to Programs HARDWARE: Ensure Physical Security, Performance of Computer HardwareHARDWARE: Ensure Physical Security, Performance of Computer Hardware* 14.17

GENERAL CONTROLS COMPUTER OPERATIONS: Ensure Procedures Consistently, Correctly Applied to Data Storage, ProcessingCOMPUTER OPERATIONS: Ensure Procedures Consistently, Correctly Applied to Data Storage, Processing DATA SECURITY: Ensure Data Disks, Tapes Protected from Wrongful Access, Change, DestructionDATA SECURITY: Ensure Data Disks, Tapes Protected from Wrongful Access, Change, Destruction ADMINISTRATIVE: Ensure Controls Properly Executed, EnforcedADMINISTRATIVE: Ensure Controls Properly Executed, Enforced SEGREGATION OF FUNCTIONS: Divide Tasks to Minimize RisksSEGREGATION OF FUNCTIONS: Divide Tasks to Minimize Risks* 14.18

APPLICATION CONTROLS INPUTINPUT PROCESSINGPROCESSING OUTPUTOUTPUT* 14.19

INPUT CONTROLS INPUT AUTHORIZATION: Record, Monitor Source DocumentsINPUT AUTHORIZATION: Record, Monitor Source Documents DATA CONVERSION: Transcribe Data Properly from one Form to AnotherDATA CONVERSION: Transcribe Data Properly from one Form to Another BATCH CONTROL TOTALS: Count Transactions Prior to and After ProcessingBATCH CONTROL TOTALS: Count Transactions Prior to and After Processing EDIT CHECKS: Verify Input Data, Correct ErrorsEDIT CHECKS: Verify Input Data, Correct Errors* 14.20

PROCESSING CONTROLS ESTABLISH THAT DATA IS COMPLETE, ACCURATE DURING PROCESSING ESTABLISH THAT DATA IS COMPLETE, ACCURATE DURING PROCESSING RUN CONTROL TOTALS: Generate Control Totals Before & After ProcessingRUN CONTROL TOTALS: Generate Control Totals Before & After Processing COMPUTER MATCHING: Match Input Data to Master FilesCOMPUTER MATCHING: Match Input Data to Master Files* 14.21

OUTPUT CONTROLS ESTABLISH THAT RESULTS ARE ACCURATE, COMPLETE, PROPERLY DISTRIBUTED ESTABLISH THAT RESULTS ARE ACCURATE, COMPLETE, PROPERLY DISTRIBUTED BALANCE INPUT, PROCESSING, OUTPUT TOTALSBALANCE INPUT, PROCESSING, OUTPUT TOTALS REVIEW PROCESSING LOGSREVIEW PROCESSING LOGS ENSURE ONLY AUTHORIZED RECIPIENTS GET RESULTSENSURE ONLY AUTHORIZED RECIPIENTS GET RESULTS* 14.22

DEVELOPING A CONTROL STRUCTURE COSTS: Can be Expensive to Build; Complicated to UseCOSTS: Can be Expensive to Build; Complicated to Use BENEFITS: Reduces Expensive Errors, Loss of Time, Resources, Good WillBENEFITS: Reduces Expensive Errors, Loss of Time, Resources, Good Will RISK ASSESSMENT: Determine Frequency of Occurrence of Problem, Cost, Damage if it Were to Occur RISK ASSESSMENT: Determine Frequency of Occurrence of Problem, Cost, Damage if it Were to Occur* 14.23

MIS AUDIT IDENTIFIES CONTROLS OF INFORMATION SYSTEMS, ASSESSES THEIR EFFECTIVENESS IDENTIFIES CONTROLS OF INFORMATION SYSTEMS, ASSESSES THEIR EFFECTIVENESS TRACE FLOW OF SAMPLE TRANSACTIONS; NOTE HOW CONTROLS WORKTRACE FLOW OF SAMPLE TRANSACTIONS; NOTE HOW CONTROLS WORK LIST, RANK WEAKNESSESLIST, RANK WEAKNESSES ESTIMATE PROBABILITIES, IMPACTESTIMATE PROBABILITIES, IMPACT REPORT TO MANAGEMENTREPORT TO MANAGEMENT* 14.24

SOFTWARE QUALITY ASSURANCE USE PROVEN DEVELOPMENT METHODOLOGIESUSE PROVEN DEVELOPMENT METHODOLOGIES RESOURCES ALLOCATION: How are Costs, Time, People Assigned During Development?RESOURCES ALLOCATION: How are Costs, Time, People Assigned During Development? SOFTWARE METRICS: Quantifiable System Measurements for Objective Software AssessmentSOFTWARE METRICS: Quantifiable System Measurements for Objective Software Assessment TESTING: Walkthrough of Design Documentation, Debugging to Discover, Eliminate Defects, Data Quality Audit to Sample, Measure Accuracy, Completeness of DataTESTING: Walkthrough of Design Documentation, Debugging to Discover, Eliminate Defects, Data Quality Audit to Sample, Measure Accuracy, Completeness of Data* 14.25

MANAGEMENT CHALLENGES LARGE MULTI-USER NETWORKS DIFFICULT TO SECURELARGE MULTI-USER NETWORKS DIFFICULT TO SECURE BALANCE DEGREE OF CONTROL, MAIN THREAT IS EXTERNALBALANCE DEGREE OF CONTROL, MAIN THREAT IS EXTERNAL APPLY QUALITY ASSURANCE STANDARDSAPPLY QUALITY ASSURANCE STANDARDS* 14.26