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

1. 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

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7. Donald Hester IT Best Practices for Community Colleges Part 1: IT Risk Management

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?

10. 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

11. Asset Asset Vulnerability Risk Assessment Threat Vulnerability Threat Countermeasure •

12. 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

13. Risk Management • Process not a goal • SDLC (Systems Development Life Cycle) • Any change in environment changes your risk level

14. 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

15. 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.

16. 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

17. 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

18. 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.

19. Phase 1 Identify assets, determine their value and classify them.

20. Types of Assets • Physical • Hardware • Buildings • Information • Data • Software • Documentation • Human Resources • Reputation

21. 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 Value of Assets

22. Phase 2 Identify the risks associated with the assets. Threat / Vulnerability pare

23. Physical Loss Theft Environmental Errors and Omissions Humans Software Malfunction Equipment failure Misuse Attacks Internal or External Intentional or unintentional Action or inaction Types of Risk

24. Phase 3 Impact analysis

25. Quantitative Formal Numeric Monetary Statistical Qualitative Informal Rating Gut feeling Educated guess Delphi method Risk Analysis

26. 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

27. 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

28. 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

29. Phase 4 Determine what controls can be used, what the cost associated with each control and recommend controls.

30. 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

31. 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

32. 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

33. Phase 5 Documentation

34. Documented Risk Assessment

35. 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

36. 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."

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

38. 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 Q&A

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40. Thanks for attending For upcoming events and links to recently archived seminars, check the @ONE Web site at: http://onefortraining.org/ IT Best Practices for Community Colleges Part 1: IT Risk Management