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Laremy Tunsil’s Social Media Controversy Highlights NFL Draft Risks

shutterstock_212182807Last night was the first round of the 2016 NFL Draft and the lead story was that of Laremy Tunsil.

By many scouts’ accounts he was one of the most talented prospects in the draft and was expected to be chosen in the top five or six.

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Instead, Tunsil tumbled all the way to number 13 after an untimely video was posted to his Twitter account depicting him smoking marijuana through a gas mask. The tweet was quickly deleted but not before creating a snowball effect that will likely cost Tunsil approximately $8 million in lost contract value, as estimated by Forbes based on the NFL’s Salary Cap and Rookie Compensation Pool (a player chosen at #6 would be expected to receive a contract of $20.4 million, while the 13th pick would receive an estimated $12.4 million).

If you watched the first round coverage last night, the term “risk management” was thrown around generously by commentators. In many cases, NFL draft prospects are investments worth many millions of dollars. But with each investment comes questions of risk versus return.

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The Miami Dolphins, who selected Tunsil, made a decision last night that the investment of approximately $12 million dollars mitigated the risks posed by a player who could have drug related issues that could violate NFL player conduct rules. Moving forward, the Dolphins will have to consider the following risks:

  • Organizational Risk: In addition to the marijuana video, Tunsil admitted to what amounts to violating NCAA rules while in college, which will certainly result in disciplinary actions against his alma mater. The Dolphins still have to sign Laremy Tunsil and now have to determine if they can expect a positive return from a player who demonstrates the potential to weaken an entire institution.
  • Reputational risk: Will there be a backlash from the fan base for drafting someone who clearly demonstrates serious lapses in judgement? Remember, these players are not just investments in terms of their performance, but in the revenue and public relations image they create for their respective team. As has been demonstrated in the past with other NFL teams, reputational risk is not just an external factor but an internal one at that that can affect team’s performance on the field.
  • Social media risk: Laremy Tunsil’s agent claims that his client’s social media accounts were hacked. Regardless of whether or not that is true, the damage has been done. But what prevents any of his accounts from being hacked in the future? Will this inspire other potential black hats to hack athlete’s social media accounts? Can the Dolphins impose a social media blackout on its entire franchise? The Dolphins will need to consider what social media risks Laremy Tunsil may pose to the franchise’s image moving forward.

Overall, if Tunsil is as talented as he is expected to be, then the risk of selecting him will likely be worth the reward.

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Right now, the Miami Dolphins have made a decision that their potential investment of $12 million dollars will benefit the team in the future. Let’s hope for their sake that they have a risk management program in place that will give as much consideration to the risks listed above as they presumably give to winning a Super Bowl title.

Phishing: Understanding Your Cyber Adversaries

Nearly two years ago, an infamous incident occurred where stolen pictures of celebrities flooded the internet. Originally, it was thought that this was due to an iCloud vulnerability that allowed a brute force attack. But it now turns out it was because of a simple social engineering phishing hack.

Phishing usually involves sending mass emails that masquerade as legitimate communications, coming from a trustworthy source like a big bank or credit card company. The phisher seeks to trick the recipient into clicking on a link or opening an attachment that downloads malware onto the victim’s computer. The malware can then be used for criminal activity including theft of sensitive data or money. While phishers may send thousands of emails, all they need are a few or even one individual to fall for their trick to get into the IT system. It’s easy to forget that security threats aren’t always the work of sophisticated technology geniuses with malevolent intent. As in the case of the celebrity photos, the method was relatively simple. However, it still caused reputational damage.

Cyber attacks don’t appear out of nowhere.

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At the beginning and right through development and attack, humans are involved. Recently, we profiled half a dozen types of attackers. We call them the “Unusual Suspects.” An attack might start with the Professional working in the digital shadows seeking to make the most money possible from the damage they cause. Then you’ve got the Mules and Getaways who are on the front line, and will be the first to get caught when the law comes knocking. There are also Activists and Nation State Actors who are looking to change the world or steal information on behalf of their country’s government. And then there’s the Insider leaking sensitive information accidentally or on purpose with malicious intent.

bae - the usual suspects

These are all just some of personas BAE Systems recently identified as key threats to businesses and without them, cybercrime can’t exist.

Wising up to phishing attacks

In the IT space, one of the most common ways cyber criminals target employees of a company is through phishing. In the aforementioned celebrity photos case, court documents said Ryan Collins, 36, of Pennsylvania, hacked more than 100 people. According to reports in the press he used email names like ‘e-mail.protection318@icloud.com’ and asked for password details.

With these credentials, the hacker was able to go through email accounts looking for photos and videos, managing to get into around 50 iCloud accounts and 72 Gmail accounts mostly belonging to celebrities. It’s quite easy to imagine the damage hackers could cause if they got hold of corporate emails – think of the damage the 2014 Sony hack inflicted.

You can’t patch a human

Employees will always be a weak spot, and clever social engineering is leading to more examples of how this weakness can be exploited. The effects can be devastating. For example: a company that collects credit card data from its customers is at risk of a major data breach from a single employee clicking on an email leading to a website laced with malware. The financial and/or reputational damage and the related fines or compensation claims that result could be significant.

At its core, combating social engineering is a human problem that requires human solutions. In certain cases victims may violate policies, but it may often be the case that the rules or training were not clear enough for the employee to know they were doing something that could have serious consequences. And because humans are behind social engineering attacks, they are capable of evolving, matching the way the business world is using technology.

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To mitigate against social engineering attacks, there needs to be security awareness and culture from top to bottom. This might mean ongoing training for employees to understand the threats, as well as the right policies and procedures in place. This helps employees understand the risk from social engineering and what role they have in preventing it. Remember, this all has to be done in tandem with putting the right technology in place.

Defeating the Unusual Suspects

Defending against cyber threats is all well and good, but what about catching these Unusual Suspects? This is difficult, because they use sophisticated tactics to escape detection–they are located all over the world, and use secure software to escape detection and remain anonymous, often routing communications through multiple countries to avoid being caught.

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Fortunately this is a case where human fallibility is a good thing–criminals will make mistakes and leave digital finger prints that sophisticated analytics and forensic analysis can pick up. Finally don’t underestimate the power of human ingenuity–thanks to the efforts of security professionals, we’re finally getting to a point where the investigation of online crime is being slowly demystified and defenses put in place to mitigate the threat.

How Cybersecure is Your Company?

cyber headlines

It should come as no surprise that security has moved from an afterthought at global organizations to a front-and-center consideration, often involving the CEO and board of directors. Headlines of the world’s largest companies involved in breaches are rampant, and will only increase as organizations accelerate their digital transformation plans and in doing so create lucrative opportunities for bad actors to steal valuable assets. Businesses are inherently interested in making money, and cybersecurity crimes have a significant impact on their bottom line. In fact, it is estimated that cybercrime will cost $2.1 trillion by 2019, according to Juniper Research.

For C-level execs and board members alike, their real understanding of cyber-exposure is too often binary: Are we on the front page of the Wall St. Journal or Not? While this may be an unfair over-generalization for tech-savvy board members, it is clear that cybersecurity is now included in their “fiduciary duties.” With increasing investments going to security software, consultants, and now cyber-insurance, executives and officers must know the risk profile of their digital systems and security service level agreements (SSLAs).

Organizations looking to maintain their competitive edge will take a new approach to security from the first line defenders in the IT department to the boardroom. The quickest and simplest step in moving the right direction must be to answer “How secure are we as an organization?”

The Best Defense is a Good Offense

Forward thinking organizations are appointing board members that have recognized this security paradigm shift and are moving from a defensive to an offensive mindset when it comes to protecting their assets. Some companies, like AIG, Blackberry, General Motors and Wells Fargo are even going so far as to appoint board members with cybersecurity expertise. While it isn’t mandatory that organizations have cybersecurity experts on their boards, the reality is that no board can escape responsibility, and digital threats will only become more a part of daily business life.

Ask the Right Questions

Beyond asking “How secure are we?” board members should ask their CISOs and security professionals whether their resources and budgets are appropriate. While CISOs will likely always ask for more, they need to be able to demonstrate specific holes and needs or anticipate pending regulatory changes specific to their industries. It would also be wise to regularly ask what internal changes have been made in light of developments in the industry. Additional questions that should be asked include:

  • How are you designing a security posture that does not slow down business operations?
  • How do we know that data/IP systems not in our control are safe and secure, such as internet of things (IoT) and cloud?
  • How do we ensure that we are ahead of new regulatory requirements coming down the pike?
  • Who is responsible for security—CISO, CIO or risk & compliance officer?
  • What is our risk score matrix?

Establish a Seat at the Table

For CISOs, this new attention can be a double-edged sword; while the increased visibility of their position could be beneficial to their own importance to the company, their performance will be scrutinized by the highest levels of management.

CISOs and their security equivalents presenting to the board require a persistent seat at the table. Bringing them in just for an annual report will leave many questions unanswered and does not paint an accurate picture of the organization’s risk profile. Continual updates should include both positive and negative developments, which will make budget increase requests more likely when needed.

These experts should also be expected to provide detailed analytics and a tailored executive dashboard that demonstrates the progress made against goals and benchmarks. The sophistication of these dashboards will depend on the board’s expertise but educating these members should be included in any presentation.

Put a Price on it

When taking these steps and bringing security to the forefront of business planning, each board presentation will allow organizations to make security a marketable attribute. Consumers are becoming increasingly fickle about doing business with organizations that have been breached and as a result are looking for assurance that they and their data will be secured. Promoting your organization’s commitment to security can be a valuable asset to the company’s bottom line. Board members can play a significant role in shifting perception and reality in the marketplace and would be wise to ask more questions to get closer to answering “How secure are we?”

Top Board and C-Suite Risks for 2016

Regulatory changes, economic conditions and cyberthreats are the top concerns of board members and company executives this year, according to a new enterprise risk management survey.

U.S.-based companies listed several operational risks as top concerns, while non-U.S. companies listed only one, cyberthreat, as a major concern, according to the report, Executive Perspectives on Top Risks for 2016, by North Carolina State’s ERM Initiative and Protiviti.

Overall, companies see the current business environment as riskier than in 2015, but not as risky as 2014.

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With increased inquiries and added concerns about risk from boards of directors and company executives, respondents indicated they will be investing more in risk management this year. “More organizations are realizing that additional risk management sophistication is warranted given the fast pace in which complex risks are emerging,” the study found.

Boards of directors rated only one strategic risk among their top five concerns, with the remaining falling into macroeconomic and operational risk categories.

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CEOs, on the other hand, saw strategic risks as three out of their top five issues.

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According to the study:

“This disparity in the viewpoints emphasizes the critical importance of both the board and management team engaging in risk discussions, given their unique perspectives may be contributing to an apparent lack of consensus about the organization’s most significant emerging risks.”

ERM Risks