Mind the gap

BY Richard Summerfield

One need only pick up a newspaper to see the importance of developing a robust and comprehensive cyber security programme. Data breaches have, in recent years, emerged as one of the most pressing corporate issues of our time. In light of this rising threat,  many companies are pouring millions of dollars and thousands of manpower hours into shoring up their cyber defences.

However, an ‘accountability gap’ is opening up in the world of cyber security, suggests Tanium and NASDAQ in a new report. According to the study, which surveyed 1530 non-executive directors, c-level executives, chief information officers and chief information security officers across the US, the UK, Germany, Japan, Denmark, Norway, Sweden and Finland, 40 percent of executives believe that they feel no responsibility for the impact any cyber attack might have.

Furthermore the Tanium/NASDAQ survey suggests that among the most vulnerable companies, 98 percent of business leaders are not confident in their organisation’s ability to monitor all devices and users at all times. More than 90 percent of respondents said that they are unable to read a cyber security report and are not prepared to handle a major attack. Further, only 10 percent of those surveyed agreed that they are regularly updated with information about the types of cyber security threats to their business.

Worryingly, only 9 percent of executives claimed that their systems were updated regularly in response to new cyber threats. Given the speed, agility and inventiveness demonstrated by cyber criminals in recent years, this inability or unwillingness to adapt is an alarming revelation in a business landscape pockmarked with risk.

Cyber crime, as the scandal around the ‘Panama Papers’ has recently reiterated, is a looming, ever present threat. Companies must do more to address their yawning accountability gap, before they find themselves in the headlines.

Report: The Accountability Gap: Cybersecurity & Building a Culture of Responsibility

P&U sector rethinks business models to tackle cyber security challenges

BY Fraser Tennant

Understanding the cyber security challenges facing the power and utilities (P&U) sector and improving how businesses respond to them is the overarching theme of a new EY report published this week.

In EY’s ‘Creating trust in the digital world’ global information survey 2015, 1755 respondents from global P&U organisations provide insight into the most important cyber security issues facing the sector today – a sector currently undergoing major transformation due to the introduction of smart meters and data networks across the digital energy value chain.

Moreover, the onset of this digital energy value chain, what EY describes as the “attack surface” of P&U organisations, is expanding considerably, as is the sophistication and persistence of the cyber attacks being launched by cyber criminals.

Highlighting the main concerns of the P&U sector, the EY report reveals that 19 percent of P&U responders admit that they do not have an information security strategy; 46 percent point to a lack of executive awareness or support as a major obstacle to dealing with threats to cyber security; and 55 percent confirm that their organisation does not have a dedicated security operations centre (SOC).

In terms of how P&U organisations should manage a cyber attack, the report recommends that they first identify their key risk management principles and apply them to the cyber risk issue. Fundamentally, this means knowing their critical assets; making cyber risk more tangible; aligning cyber risk with existing risk frameworks; making cyber risk relevant to the business; and embedding risk appetite within investment decisions.   

Furthermore, says EY, organisations should adopt a three-stage improvement process: (i) ‘Activate’ (establishing and improving cyber security foundations); (ii) ‘Adapt’ (adapting cyber security to changing requirements); and (iii) ‘Anticipate’ (predicting what is coming to be better prepared).

“P&U companies are rethinking their business models by being more innovative and offering a richer customer and employee experience through a variety of channels”, states the report. “However, there are significant cyber threats, and organisations need to recognise and understand the current challenges to get ahead of the cyber criminals.”

Although the EY report makes it clear that the P&U organisations are indeed making significant progress as far as tightening up their cyber security, the overriding message is that there remains considerable room for improvement across the sector.

Report: Global information survey 2015: creating trust in the digital world

The Internet of Threats

BY Richard Summerfield

Much has been made of the Internet of Things (IoT) over the last few years. Heralded as the dawning of a new technological era, or perhaps the next industrial revolution, the IoT will see smart devices of all shapes and sizes combine to create a network of connected devices communicating and sharing vast quantities of highly valuable data.

Although the technology is still in something of a nascent state, it is slowly beginning to live up to its reputation. Smart or connected devices are becoming more common, and generating considerable amounts of data. The IoT will, and is, changing the way firms do business, making new capabilities possible and introducing efficiencies to companies to help them remain competitive in an increasingly crowded marketplace.

For many companies, these predicted data flows are seemingly too good an opportunity to pass up, and firms are rushing headlong into the burgeoning IoT space. According to a report from AT&T, 'Exploring IoT Security', which surveyed 500 companies around the world with more than 1000 employees, 85 percent of organisations are exploring the prospect of implementing connected devices across their enterprises.

However, the scramble to gain a part of the IoT market is not without risks; indeed, for companies hoping to incorporate the IoT into their wider operations, the proliferation of connected devices will expose their businesses to considerable cyber security risks. AT&T’s data suggests that just 10 percent of the firms surveyed are confident in the security of connected devices. With more and more companies marrying their products with connected technology, the importance of effective and efficient cyber security is obvious. According to AT&T, by 2020 there will be around 50 billion smart devices ‘in the wild’. With smart technology finding its way into everything from home heating systems to cars, organisations cannot afford to neglect their cyber security obligations.

Given that the cost of a cyber attack can run into the millions, organisations must be prepared - yet data suggests that many companies are still scrambling to get their houses in order. Alarmingly, the report notes that only 47 percent of respondents say their organisations analyse connected device security logs and alerts more than once a day. Furthermore, only 14 percent of companies have instituted a formal auditing process to help understand whether their devices are secure and how many devices they have; only 17 percent of companies involve their boards in decision-making around IoT security.Obviously, improvement is needed. 

Efforts are underway to improve cyber security provisions. The report recommends that companies: (i) assess their risk; (ii) secure both information and devices; (iii) align their organisation and governance for IoT; and (iv) define their legal and regulatory issues.

Clearly, these measures would be a good starting point for any firm; however, more must be done - and quickly, if the IoT is to fulfil its potential as a true technological game changer.

Report: Exploring IoT Security

Fifth column risks rise - EY

BY Richard Summerfield

Cyber breaches and the threat posed by malicious insiders are two of the biggest risks driving investment in global forensic data analytics (FDA), according a new report from EY.

EY's 2016 global forensic data analytics survey, ‘Shifting into high gear: mitigating risks and demonstrating returns’, notes that insider threats  in particular offer the biggest risk to organisations becoming a victim of fraud, corruption or data loss. The most prominent forms of inside threat, according to respondents, include malicious insiders stealing, manipulating or destroying data.

The survey questioned 665 executives globally across a wide range of industries including the financial services, life sciences, manufacturing and power and utilities sectors. From the available data, it is clear that concerns around cyber security are helping to crystalise opinions across industry boundaries; indeed, companies are turning to FDA to try to counteract cyber threats.

Companies have been spurred into action by increasing activity among cyber criminals as well as aggressive regulatory pressure. Rising demands from both governmental bodies and the general public is driving much of the investment in FDA, notes EY. Forty-three percent of respondents claimed regulatory pressure was one of the main driving forces behind their FDA investment, second only to the burgeoning threat posed by cyber crime.

Of those executives surveyed, 44 percent reported an increasing level of concern over “bribery and corruption risk” while 62 percent noted an increasing concern over  “cyber breach or insider threat”.

Given the recent spate of major, headline grabbing cyber attacks, it is little surprise that breaches are weighing heavily on executive minds the world over. As companies take steps to protect their physical and digital assets from internal and external threats, the FDA will continue to play an important role in helping them navigate such risks. Given the size of the fines and sanctions imposed on companies and individuals in recent years, c-suites are understandably concerned about regulatory enforcement around cyber risk.

With the c-suite increasingly worried about the threat of cyber risk and malicious internal actors

Many companies have been pouring considerable resources into bolstering their FDA efforts in recent years. Spend is expected to continue throughout 2016. In 2014, 64 percent of those surveyed believed that their investment in FDA was adequate, while in the latest survey only 55 percent felt the same. Furthermore, three out of five respondents said they intend to increase their FDA spend over the next two years.

Report: Shifting into high gear: mitigating risks and demonstrating returns

Cyber jobs boom

BY Richard Summerfield

Thanks to the increasing sophistication of cyber criminals and the technological weapons available to them, instances of cyber crime and terrorism have increased exponentially in recent years.

Though firms have been aware of the nascent threat of cyber crime for some time, many of them are largely unprepared to tackle the problem. However, with more and more high profile cyber breaches occurring, firms are beginning to fight back.

Organisations worldwide are looking to bolster their cyber security defences, and though the demand for competent and effective cyber security professionals is high, there is still a serious skill shortage. In the US alone, more than 209,000 cyber security jobs are currently unfilled, and job postings for cyber professionals are up 74 percent over the past five years, according to a 2015 analysis from the Bureau of Labour Statistics by Peninsula Press.

Globally, the figure for cyber security job openings is believed to be around one million, according to a new report from Cisco.

Cisco’s report notes, however, that the hiring of a raft of new cyber security officials should form just part of a wider cyber response plan. The report recommends that all organisations establish a separate security incident response team. The importance of this response team is likely to increase as organisations become more reliant on technology.

The Internet of Things (IoT) will also have a profound impact on the way companies conduct business. With the IoT security market expected to grow from $6.89bn in 2015 to nearly $29bn by 2020, the opportunities for cyber security professionals in the near future will be plentiful. As more connected or smart devices find their way into our personal and professional lives, the size of the market will grow exponentially.

However, the growth of IoT will present a number of challenges in the years to come. Organisations will need to marry IT and operational technology, in turn giving adversaries new targets such as vehicles, buildings and manufacturing plants, according to Cisco.

Moving forward, the report recommends that companies look to appoint a varied and diverse number of cyber security professionals. The modern chief information security officer should have at her disposal skilled security professionals covering a range of areas. This is particularly important given consumers' growing awareness of cyber and data security issues.

Report: Mitigating the Cybersecurity Skills Shortage