Presentation Slides

IT Best Practices for Community Colleges Part 1:
IT Risk Management
Donald Hester
February 9, 2010
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CISOA Conference
IT Best Practices for Community Colleges Part 1:
IT Risk Management
Donald Hester
IT Best Practices for Community
 Series 1 Spring 2010
• Part 1 Risk Management
• Part 2 Business Continuity
• Part 3 Configuration Management
• Part 4 Awareness Training
 Series 2 Fall 2010
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,
Threat: event that has an undesirable impact, potential
Vulnerability: weakness
Exposure: open to threat
Residual risk: risk left over after controls are put in
Acceptable risk: risk accepted by management
Risk Assessment
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
 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-
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.
How you can react to risks?
 Reduce the risk
• Apply countermeasures and controls
 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
• 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
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
Types of Assets
 Physical
• Hardware
• Buildings
 Information
• Data
• Software
• Documentation
 Human Resources
 Reputation
Value of Assets
Acquisition costs
 Impact to
• Productivity
Development costs
• Usefulness
Maintenance costs
• Reputation
Value to user, customer
• Operations
Value to enemy
• Competitiveness
Market value (how much
someone will pay)
 Replacement costs
 Liability
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
 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
• How much loss in a year; ALE (Annualized Loss
Prioritize Risks
 Select Risks with the
highest probability and
the highest impact
 Meteorite to hit the data
center would be a low
probability with a high
 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
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
 Hidden costs
• Productivity
• Maintenance
Control Selection (cont.)
 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
Phase 5
Documented Risk Assessment
Assessment Process
System Characterization
Threat Identification
Vulnerability Identification
Control Analysis
Likelihood Determination
Impact Analysis
Risk Determination
Control Recommendation
Results Document
NIST SP 800-30
“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)
" 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
"Establish a California modified version of the NIST 800-30 risk
management standard as the risk management standard for all state
"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
 Information Technology Standards and Practices for
Local Governments, September 2007 By Maze &
 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
Donald E. Hester
CISSP, CISA, CAP, MCT, MCITP, MCTS, MCSE Security, Security+
Maze & Associates
@One / San Diego City College
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IT Best Practices for Community Colleges Part 1:
IT Risk Management
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