Donald HesterFebruary 9, 2010

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IT Best Practices for Community Colleges Part 1: IT Risk ManagementIT Best Practices for Community Colleges Part 1: IT Risk Management

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Donald Hester

IT Best Practices for Community Colleges Part 1: IT Risk ManagementIT Best Practices for Community Colleges Part 1: IT Risk Management

Series 1 Spring 2010• Part 1 Risk Management

• Part 2 Business Continuity

• Part 3 Configuration Management

• Part 4 Awareness Training

Series 2 Fall 2010

8

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?

9

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

AssetV

uln

erab

ilit

y

Threat

Threat

Asset

Vu

lner

abil

ity

Counterm

easure

•

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

Process not a goal SDLC (Systems

Development Life Cycle)

Any change in environment changes your risk level

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

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.

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

Purpose• 1st 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

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.

Identify assets, determine their value and classify them.

Physical• Hardware

• Buildings

Information• Data

• Software

• Documentation

Human Resources Reputation

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

Identify the risks associated with the assets.

Threat / Vulnerability pare

Physical Loss• Theft

• Environmental

Errors and Omissions• Humans

• Software

Malfunction• Equipment failure

Misuse Attacks

Internal or External Intentional or

unintentional Action or inaction

Impact analysis

Quantitative• Formal

• Numeric

• Monetary

• Statistical

Qualitative• Informal

• Rating

• Gut feeling

• Educated guess

• Delphi method

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

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

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

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

Mitigates the risk ALE before the control ALE after the control Control complexity Cost / Benefit Comparison ROI (Return on

Investment) Hidden costs

• Productivity • Maintenance

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

Rev1/8/2010

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

Documentation

Documented Risk AssessmentDocumented Risk Assessment

1. System Characterization

2. Threat Identification

3. Vulnerability Identification

4. Control Analysis

5. Likelihood Determination

6. Impact Analysis

7. Risk Determination

8. Control Recommendation

9. Results Document

NIST SP 800-30

36

“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."

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

37

Donald E. HesterCISSP, 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

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IT Best Practices for Community Colleges Part 1: IT Risk Management IT Best Practices for Community Colleges Part 1: IT Risk Management