Architecting to Auditing Risk based Controls - … Pre - Architecting...Existing Controls...

Architecting to Auditing Risk Based Controls

Dan Seider, Information Security Architect

Nitin Salvi, Information Security Architect

The views, thoughts, claims or opinions in this presentation are solely those of the presenter. Nothing in this presentation represents the views, thoughts, claims or opinions of GM Financial Corporation, General Motors Corporation or any other organization or entity.

Disclaimer

Architecting risk based security controls

Baseline and Monitoring risk based controls

Developing a risk based control audit plan

Recommendations For:

A risk point of view is a different sort of “Beastie”

A Risk Focus?

Source: © Maurice Sendak

No Standard Definition Oxford dictionary

a situation involving exposure to danger. the possibility that something unpleasant will happen. 3 a person or thing causing a risk or regarded in relation to risk: a fire risk

ISO Guide 73, Risk Management

The combination of the probability of an event and its consequence

ISO 13335, Information Technology Security Techniques

The potential that a given threat will exploit vulnerabilities of an asset or group of assets and thereby cause harm to the organization.

Conclusion differences exist between dictionary, government, industry, and Information

Security definitions of well used terms.

Also, Considerable disagreement around definition of “threat,” “impact,” “probability” and “risk”, though the use of “threat” as a circumstance, and “risk” as having elements are largely agreed

Risk Definitions

Risk is the product of 3 primary parts:

“Risk” contains controllable elements of vulnerability, probability and business impact.

It also contains the uncontrollable element of a threatening circumstance (actor, motivation).

Risk Elements

Risk

Threat: What are we

concerned about ?

Vulnerability

with

probabilities

Consequences

Do they Cascade?

X X =

Cyber Threat Actors

John C. Mallery, Massachusetts Institute of Technology

Current Control Environment

Historically controls driven by regulatory and compliance requirements and folklore (i.e. we’ve always done it this way).

Perceived vulnerability.

Synchronization with real threats,

Different levels of the technology stack .

Existing Controls Environment

Risk vs. Spending

2013 Ponemon Institute study on risk-based security management

Dynamic business environment coupled with dynamic risk with static controls,

Multiple risk scenarios – single control assumed adequate,

multiple national and international requirements.

Why the Imbalances?

Managing risk not transferring / ignoring it,

Business aligned and customer focused,

Proactively seeks process improvement based on risk assessments,

Supports continual risk-reassessment.

A Risk Based Architecture Is…

Risk and Opportunity Model

Source: SABSA Institute

Risk and Opportunity

Source: SABSA Institute

Balancing threat, impact and vulnerability

Flexible and agile selection / deployment of safeguards and countermeasures

Protection Using Risk Based Controls

Improves ROI,

Driver for business performance and assurance,

Manages risk and enables the creation and preservation of business value,

Risk-based decisions,

Enables consistent controls tailoring risk level,

Supports continuous monitoring and reporting for risk, compliance and security.

Why Risk Based Controls?

Process

Risk

Control

Design

Control

Implementation

Baseline

& Monitor

Assure /

Audit

Risk Based Control Selection

Identify

Process

Risk

Identify

Security

Services and

Controls

Develop

Assurance/

Audit plan

(KPI – KRI and

Key Enablers)

Mechanisms

to Support

Controls

Create

Process

Baseline

Creating

Metrics

Reporting

Assurance

Matrix

Reporting

Aggregated ScoreCard

Metrics Results Periodic Reporting

Matrix Creations

Controls &Security Services

Solutions &Security Programs &

Implantation Guidelines

Process/Business Risk

BUSINESS (Enterprise)

INFORMATION SECURITY

(Strategic & Enterprise)

ITSECURITY

(Operational)

ITOPERATIONS

(Service Delivery)

AS

SU

RA

NC

E

Implementation Mechanisms

Risk Based Controls Tracing

Defense in Depth

Source: SABSA Institute

Defense In Depth

Application

Middleware

Platform

Network

Def

ense

In

Dep

th

Tec

hn

olo

gy

Sta

ck

Review risk assessments

Perform process risk assessment

Other risk process within your organization

Identify Process Risk

A

2

None / Information would be re-entered or revised with little or no further impact

would result in minor Company losses; not visible to customers

would cause moderate Company losses

would seriously/adversely impact business or Company objectives; risk of financial loss/legal liability exists

A

3

No impact to the organization

Information is important ; unavailable information would have moderate impact to the organization

Information is vital; organization/business partners and/or customers may be adversely impacted

Information is critical; unavailable information would seriously impact organization; financial penalties possible

I,C

4

No

Mandatory business non-regulatory compliance rules (e.g., PCI)

Legal jurisdiction, Federal laws and agencies (e.g., HIPAA-GLBA/Sarbanes-Oxley/SEC)

International jurisdiction

Don’t know

What is the business impact if information owned/generated/used by this business process is inappropriately or

inadvertently modified? Inappropriate or inadvertent modifications:

What is the business impact if information owned/generated/used by this business process

is unavailable for use for one day?

Is this business process governed by or affected International/US laws, regulations, or other mandatory business

requirement?

Example: Identify Process Risk

Process Risk M EDIUM

Identify security services related to the process,

Identify controls related to the services,

Assurance Profiles,

KPI, KRI, Key Enabler.

Controls Design

Process Relationships

External Entities Internal Entities

Business Process

Regulators Suppliers

Partners

External CustomersTechnology ProvidersBusiness Process

Business Units

Internal UsersTechnology Providers

Identify Security Services and Controls

Network Control Map

Assurance Profile

Controls Selection/Audit Plan

Process

Control

Number

Security Service/Requirement Required/Recommende

d/Optional

Controls Register

Referance number

Audit Plan/Guideline

System Hardening

1 Harden Windows Server Required Standard 13 CIS harding benchmark

2 Harden IIS Server Required Standard 13 CIS harding benchmark

Authentication and Identity Management

3 Users are identified with a unique user ID, and avoid the use

of shared or group accounts, dependent on data

classification.

Required Standard 94 users naming convention follow security

standanrds

4 Users are provided with a mechanism for selecting their

own passwords.

Required Standard 95 Password mechnisam supports security

standards

5 Password length and complexity requirements are enforced

for new passwords and password resets as stipulated in

applicable agency Password Standards.

Required Standard 95

6 Authentication controls are enforced on a trusted system

(i.e. server-side instead of client-side).

Required Standard 96

7 High value transactions utilise message integrity checks to

ensure that data has not been modified by an unauthorised

party.

Recommended Standard 97

8 Passwords are stored using cryptographically strong one-

way hashes (e.g. ASP.NET hash setting).

Required Standard 95

9 Existing password and authentication mechanisms (e.g.

ASP.NET membership providers) are used instead of

custom-developed authentication mechanisms.

Required Standard 95

10 Generic responses are returned for all authentication

failures such that they do not indicate which part of the

authentication data was incorrect.

Required Standard 95

Control Mechanisms

Monitor business process to develop baseline (3 to 6 months),

Document any anomalies,

Create alerts based on anomalies,

Create alerts for any activity outside baseline,

Create metrics ( KPIs, KRIs and Key Enablers).

Monitoring

Based on the business risk controls effectiveness is monitored and measured,

Reports are generated and forwarded to the business to assure business risk is properly managed,

Reporting metrics ( KPIs, KRIs and Key Enablers).

Reporting

Questions ?