1. Information Systems, Security, and e-Commerce* ACCT7320, Controllership C. Bailey *Ch. 43-46 in Controllership : The Work of the Managerial Accountant, by Janice M. Roehl-Anderson, Steven M. Bragg, 7th Edition, 2004.

2. Information Security Systems: Risk Analysis Process

3. Controller’s Role in Information Security (p. 841) Establishing top-level information protection goals Monitoring compliance to security standards and policies Assessing the risk to mission-critical systems – Balancing costs, benefits Participating in the investigation of security incidents – Including evaluation of loss or impact

4. Goals concerning data Confidentiality Integrity Availability

5. Types of threats Intentional: – Unauthorized access by outsider – Unauthorized access by insider – Malicious software Unintentional: – Hardware/software failure – Human error

6. Policies Levels of information – Restricted (release would cause serious damage) – Company Confidential (dondisclosure agreements) – Internal use only (business purpose, as needed) – Public Classes of Service (relative importance to day-to-day operations) – Production—mission critical – Production—non-mission-critical – Developmental – Experimental/prototype Less critical

7. Security measures Technical (p. 838) – Access controls, passwords, biometrics, firewalls… Nontechnical (p. 839) – Policies for use, physical access, insurance, recovery plans…

8. Enterprise Security Challenges Client server systems – Versus old mainframes Networks & internet – Virtual private networking (VPN) Interconnected customer & vendor – Encryption, key certificates, digital signatures

9. Enforcement (Ch. 44) Create enforceable policy – Explicit – Implementable within tech limitations Balanced, not extreme – Spell out consequences – Define escalation procedures Chain command; reporting number to call? – Clear acceptable-use policy Signed by employee

10. Enforceable policy, cont’d Notification of proprietary nature of systems – Essential for criminal case Actions to take if intrusion is suspected – Plan spelled out

11. After infraction occurs Documenting the “crime scene” – Circumstances – Define the bounds No not contact the suspect – May rule out police involvement Create backup Assure system integrity Assess the damage – Quantifiable?? Approach law enforcement officials

12. E-Commerce Security (Ch. 45) Architectures – Traditional; single-enterprise network – Demilitarized zone w/mail & web servers – Layered architectures A fundamental restructuring Multiple firewalls within the network

13. Critical security measures Firewalls – Monitors for suspicious strings/commands – Hardware or software based Intrusion detection & response software Encryption – SSL widely used for e-commerce – Assurance that: Message not intercepted Not tampered with Person is who you think they are Appropriate where parties are strangers

14. Critical security measures, cont’d. Authentication – E.g., your bank; shared secret, etc. – Relevant to both parties Are you really dealing with your bank?! Access control – E.g., different clerks can approve, make payments Host hardening Vulnerability testing

15. Digital Signatures (Ch. 46) Public key cryptology – Anyone can decode the message – Only the person with the private key can create it. Does not provide privacy, just authentication Digital certificates needed to identify who creator is – Certification authority must be trusted (like notary)

16. What drives adoption of digital signatures? Internet increasingly used for commerce – vs. expensive dedicated lines Useful even internally …but legal status still hazy

17. Let’s go phishing… http://www.profbailey.com/ACCT7320/phishing.htm