IT Best Practices for Community Colleges Part 1:

IT Risk Management

Donald Hester February 9, 2010 For audio call Toll Free 1 888-886-3951 and use PIN/code 360619

Housekeeping

• • • Maximize your CCC Confer window.

Phone audio will be in presenter-only mode.

Ask questions and make comments using the chat window.

Adjusting Audio

1) If you’re listening on your computer, adjust your volume using the speaker slider.

2) If you’re listening over the phone, click on phone headset.

Do not listen on both computer and phone.

Saving Files & Open/close Captions

1.

2.

Save chat window with floppy disc icon Open/close captioning window with CC icon

Emoticons and Polling

1) 2) Raise hand and Emoticons Polling options

CISOA Conference

http://cisoa.net

IT Best Practices for Community Colleges Part 1:

IT Risk Management

Donald Hester

8

IT Best Practices for Community Colleges

 Series 1 Spring 2010 • • • • Part 1 Risk Management Part 2 Business Continuity Part 3 Configuration Management Part 4 Awareness Training  Series 2 Fall 2010

9

Risk Management

    How do you justify a new firewall?

Is it more than you need?

Is it less than you need?

How does someone outside of IT know it was the right choice?

 How do you demonstrate due care?

Risk Management Definitions

         Risk: the potential for any loss Asset: something of value Probability: the likelihood of an event Control: something that reduces risk (countermeasure, safeguard) Threat: event that has an undesirable impact, potential danger Vulnerability: weakness Exposure: open to threat Residual risk: risk left over after controls are put in place Acceptable risk: risk accepted by management

Risk Assessment

Threat Asset Threat Asset

•

Risk Management Definitions

 Risk Management: process of reducing risks because it cannot be eliminated  Risk Analysis: identify assets and potential losses  Risk Assessment: determination of recommended controls that would reduce risk to an acceptable level  Vulnerability Assessment: used for the risk analysis, determines vulnerabilities

Risk Management

  Process not a goal  SDLC (Systems Development Life Cycle) Any change in environment changes your risk level

Risk Management

 • • • • Management’s role • Balance cost with operational goals • • Acceptable levels of risk (risk apatite) Use the risk analysis process for decision making Cost benefit analysis (ROI) Determine if controls are in place Sign-off forms to take responsibility Risk analysis team

Risk

   Management can choose how to deal with risk once they have all the information and recommendations.

 After they have the results form the risk analysis they can determine how they want to mitigate risks.

Mitigating risks to an acceptable level.

Any risk remaining is residual risk.

How you can react to risks?

 Reduce the risk • Apply countermeasures and controls (mitigation)    Accept the risk • Accept the risk with or without controls Transfer the risk • Buy insurance (mitigation) Reject the risk • Ignore the risks

Risk Analysis

  Purpose • • 1 st step in Risk Management Ensure that the security program (controls) are adequate and appropriate for the real risks Goals • • • • • • Identify assets Identify risks Connect risks and assets Determine impact Cost vs. benefit Prioritize control selection/implementation

Risk Analysis Phases

We need to determine what we have, what it is worth, what could happen to it, how often it could happen, what the impact would be if it did happen, so that we could determine what controls should be used based on cost, and document everything we discovered.

Phase 1

Identify assets, determine their value and classify them.

Types of Assets

    Physical • • Hardware Buildings Information • • • Data Software Documentation Human Resources Reputation

Value of Assets

        Acquisition costs Development costs Maintenance costs Value to user, customer Value to enemy Market value (how much someone will pay) Replacement costs Liability  Impact to • Productivity • • • • Usefulness Reputation Operations Competitiveness

Phase 2

Identify the risks associated with the assets.

Threat / Vulnerability pare

Types of Risk

     Physical Loss • Theft • Environmental Errors and Omissions • Humans • Software Malfunction • Equipment failure Misuse Attacks    Internal or External Intentional or unintentional Action or inaction

Phase 3

Impact analysis

Risk Analysis

 Quantitative • • • • Formal Numeric Monetary Statistical  Qualitative • • • • • Informal Rating Gut feeling Educated guess Delphi method

Impact Analysis

 Impact • • • • What is the asset worth; AV (Asset Value) How bad would it be; EF (Exposure Factor) One time loss; SLE (Single Loss Expectancy) How many times a year; ARO (Annualized Rate of Occurrence) • How much loss in a year; ALE (Annualized Loss Expectancy) AV * EF = SLE; SLE * ARO = ALE

Prioritize Risks

   Select Risks with the highest probability and the highest impact potential.

Meteorite to hit the data center would be a low probability with a high impact Virus would be a high probability with a potential for a high impact

Risk Based

 Controls should focus on addressing • • High probability attack High impact attacks    Consistent implementation Automated and continuously monitored Additional technical activities should be used to defend systems Rev1/8/2010

Phase 4

Determine what controls can be used, what the cost associated with each control and recommend controls.

Control Selection

       Mitigates the risk ALE before the control ALE after the control Control complexity Cost / Benefit Comparison ROI (Return on Investment) Hidden costs • • Productivity Maintenance

Control Selection (cont.)

Rev1/8/2010     Limited resources • • • • Time Funding Resources Personnel With limited resources choices have to be made about which security controls are most important A prioritized approach in implementing controls is required Prioritized by greatest risk first

A Prioritized Baseline of Controls

  How do we prioritize controls Intelligence • Knowledge of actual attacks  Controls that can prevent know attacks should be given a higher priority  A consensus report has been developed to document 20 critical controls Rev1/8/2010

Phase 5

Documentation

Documented Risk Assessment

1.

2.

3.

4.

5.

6.

7.

8.

9.

NIST Risk Assessment Process

System Characterization Threat Identification Vulnerability Identification Control Analysis Likelihood Determination Impact Analysis Risk Determination Control Recommendation Results Document NIST SP 800-30

Why NIST?

“State, local, and tribal governments, as well as private sector organizations, are encouraged to use the guidelines, as appropriate." NIST SP 800-100 California Information Security Strategic Plan (OCT 2009) "...by adopting the National Institute of Standards and Technology (NIST) 800-37 guidelines for certification and accreditation of information systems. Applying NIST guidelines to state government systems will demonstrate California’s leadership in building a resilient, secure, and trustworthy digital infrastructure." "Establish a California modified version of the NIST 800-30 risk management standard as the risk management standard for all state agencies." "Establish a California-modified version of the NIST 800-53 recommended security controls within all state agencies." 36

37

Resources

    NIST SP 800-30 Risk Management Guide for IT Systems Information Technology Standards and Practices for Local Governments, September 2007 By Maze & Associates California Information Security Strategic Plan (OCT 2009) Cybersecurity and Privacy Concepts, Strategies & Goals Volume 4 Twenty Critical Controls for Effective Cyber Defense: Consensus Audit Guidelines version 2.1, 11 Aug 2009

Q&A

Donald E. Hester CISSP, CISA, CAP, MCT, MCITP, MCTS, MCSE Security, Security+ Maze & Associates @One / San Diego City College www.LearnSecurity.org

http://www.linkedin.com/in/donaldehester http://www.facebook.com/group.php?gid=245570977486

Evaluation Survey Link

Help us improve our seminars by filing out a short online evaluation survey at: http://www.surveymonkey.com/s/10SpIT1

IT Best Practices for Community Colleges Part 1:

IT Risk Management

Thanks for attending

For upcoming events and links to recently archived seminars, check the @ONE Web site at:

http://onefortraining.org/