Category Archives: Workplace

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Should You Track Down Your Cyberattacker?

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By and large, organizations tend to invest in preventative cybersecurity measures and they also concentrate their resources on detecting and stopping cyberattacks, rather than on painstaking “who did it?” investigations. They want to close the gap, manage the public opinion fallout, learn from the episode and move on.

From an enterprise perspective, this makes sense, as resources dealing with cybersecurity are usually overstretched and the organization does not stand to gain much from determining, with a certain degree of certainty, who was behind a cyberattack. The incentive equation, of course, is different if the target of the attack is a government or a large organization that is part of a country’s critical national infrastructure.

Attack attribution has traditionally been approached from the perspective of enabling the target or victim entity to pursue the attacker either for damages in a court of law; or from a national, military or intelligence “strike back” perspective.

While dishing out some form of retribution has always been instinctual, however, only governments and very large corporations have historically had the technical toolbox, the economical means and the long-term view to pursue a cyber retribution strategy.

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But should commercial and non-commercial organizations also care about cyberattack attribution?

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Yes, within measure.

The first question ought to be: why? What does the target organization stand to gain from investing in cyber-attack attribution? The answer is that, the better it understands the attackers tools and techniques, the more likely the organization is to direct its limited resources to the right areas of defense.

As we know, each attacker or attacker group has certain preferred tooling and attacking methods. Also, they have their own motivation, speed, operational capability and discipline.

Assuming that an organization can safely concentrate only on patching, employee awareness programs, scanning, pen testing, log monitoring and other traditional defensive security measures, would be a mistake. These measures are, of course, necessary but they can no longer be the entire apparatus of cyber defense. Organizations need to invest a certain proportion of their resources in understanding their cyber adversaries, and their motivations, modus-operandi, credibility and capabilities, in order to better tailor their defensive resources.

What would be the “adequate” amount of time and effort for an organization to spend on seeking to attribute a cyberattack, successful or not, to a malicious actor or group? The effort should be proportionate with what is at risk and what resources the company has, either in house or via its suppliers and industry. Knowing at least how some of their enemies attack, however, can help companies to better leverage their resources when defending.

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Insider Threats and the Limitations of Pre-Hire Background Checks

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Background check

Is your company guarding against the threat of insider attack? If you responded with, “well, we do background checks when they are hired,” that’s a good start, but what about risk assessment during the course of an individual’s employment?

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The 2015 Insider Threat Spotlight Report from Infosec Buddy found that less than half of companies have the proper tools to fight insider threats. And, according to 62% of security professionals, that threat has increased in the past year. The average company faces four insider attacks every year, with an estimated price tag of $500,000 each, in addition to the astronomical impact a breach can have on an organization’s reputation.

So where is the disconnect? It starts with how we assess individual risk.

The limitations of the current employee screening model

The majority of companies conduct a one-time background check on new employees before they are hired. This is a necessary part of the risk assessment process, and the majority of background screening companies are great at what they do, but this model is built on a flawed assumption: that employee risk remains constant over time.

While an employee may not have posed a risk when hired, that can change quickly. Stressful life events such as a bankruptcy, a DUI, a divorce or a negative performance review can change an individual’s risk profile in an instant. It is also important to note that traditional background checks typically focus exclusively on criminal records, failing to analyze other important information sources like human resource documents, financial records, and social media activities.

And it’s not just employees. Insider threats can come in the form of third-party contractors, vendors, suppliers, and partners – in other words, any parties with the ability to access sensitive corporate information.

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A recent Accenture survey found that 76% of companies believe supply chain risk management is “very important.” The reality is that people are dynamic, and so are their motivations, which is why companies need comprehensive tools for managing personnel risk as it evolves over time.

The future of background checks: continuous identity screening

Getting proactive about managing the risks of insider threats starts with finding ways to continuously monitor personnel risk after they are brought into the organization. Advances in software offer one way to approach this challenge. Programs now exist that allow companies to actively monitor changes in personnel risk as it evolves, throughout an individual’s tenure with the company.

Continuous identity screening software automatically gathers and analyzes risk data from all relevant information sources, such as public records and HR documents, and proactively alerts risk and security managers to the most pressing threats. This allows risk managers to be continuously updated in real time, instead of traditional methods of pre-hire or periodic screening, which can uncover risk after it’s too late.

Take the example of a city bus driver who has received a recent DUI charge. Many employers would not be notified of that until a regularly-scheduled periodic background screening, if at all. Most employers rely on their employees to self-report incidents, but that does not always happen for obvious reasons. By implementing continuous screening, companies can immediately learn about that bus driver’s DUI charge, which prompts an investigation that could lead to further action.

Today’s continuous screening tools can also be customized by industry. For instance, the financial services industry may attribute more risk to an employee filing for bankruptcy than a transportation company would, whereas the healthcare industry may view odd activity on the network as a greater indicator of potential IP theft. Every industry has its own unique challenges and obstacles in meeting the mandates and regulations necessary. Tailoring the screening process accordingly can help proactively address those issues.

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What does this mean for you?

By bringing together identity data from external sources like criminal and financial records with internal sources like network activity and personnel reviews, organizations can reduce the risk of insider threats. It also allows organizations to maintain compliance through a legally defensible audit trail designed to meet critical regulations such as FCRA, FTC, and EEOC.

What Employers Can Expect from the SCOTUS Decision on Same-Sex Marriage

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On June 26, 2015, the U.S. Supreme Court issued its long-awaited decision in Obergefell, et al. v. Hodges, Director, Ohio Department Of Health; Tanco, et al. v. Haslam, Governor Of Tennesee, et al.; DeBoer, et al. v. Snyder, Governor of Michigan, et al.; and Bourke, et al. v. Bershear, Governor of Kentucky, and ruled five to four that the equal protection guarantee provided by the 14th Amendment to opposite-sex marriages extends to same-sex marriages. The SCOTUS opinion, authored by Justice Kennedy, holds that “same-sex couples may exercise the fundamental right to marry in all States [and] that there is no lawful basis for a State to refuse to recognize a lawful same-sex marriage performed in another State on the ground of its same-sex character.”

With same-sex couples now having the same rights as opposite-sex couples, how will the decision affect employers and what can employers expect as an outcome?

More Lawsuits?

With the new decision, much of what employers provide and are mandated to provide to employees, such as those rights granted by the Family and Medical Leave Act (FMLA) and other employee benefits, may change to include same-sex couples. Although the U.S. Department of Labor modified its definition of “spouse” in the FMLA back in March 2015, employers must verify they are granting all eligible employees in same-sex marriages their FMLA rights. Speaking of the U.S. Department of Labor, we expect that there will be guidance from it soon.

Employers can also expect more lawsuits under Title VII of the Civil Rights Act of 1964. Although Obergefell, Tanco, DeBoer, and Bourke are not employment cases, the Supreme Court’s decision implicates employment laws. Claims of transgender, sexual orientation, and/or gender discrimination may increase as gender identity and expression continue to be a topic of discussion. Likewise, discrimination based on marital status may give rise to lawsuits in certain states under state anti-discrimination laws.

Health and Welfare Plans Update

One of the biggest impacts the U.S. Supreme Court decision will have on employment is on employee benefits. Medical insurance coverage and taxes will change, so employers should be prepared to accommodate such changes in its policies and contracts. We expect the Internal Revenue Service will provide guidance soon.

Employee Handbook and Company Policies Update

Employers are also well-served to update their employee handbooks to reflect and extend the rights given to the opposite-sex spouses to same-sex spouses to minimize litigation risks. Employers must also revised its enrollment processes, such as updating its consent and eligibility forms, to ensure that they comply with the new rule.

We will continue to update you on the impact of the decision on employee benefits in greater detail soon.

This article previously appeared on the Seyfarth Shaw website.

Creating a Risk Intelligent Organization

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Many organizations spend time and effort building and developing robust risk mitigation frameworks and strategies to handle business-specific risks. In spite of constant monitoring through dashboards and reports, many companies still face major and unexpected issues. One of the main reasons for shortfalls in risk management is the general attitude towards risk mitigation. Although companies are well-prepared with an infrastructure in place, they often struggle when cultivating a sense of risk awareness, responsibility and intelligence into and across the fabric of an organization, which results in gaps and deficiencies.

Every organization realizes the significance of risk intelligence, but they frequently face issues in the initial stage of their transition. Developing a risk culture is frequently viewed as just a requirement to be fulfilled rather than something that adds value to an enterprise. Without a clear agenda, many companies find it impossible to cultivate risk-taking capabilities into its employee base.

Risk intelligence demands that every individual in an organization take responsibility for managing risks in the day-to-day operations. Senior management should assess the existing risk management strategy and gauge its effectiveness in alleviating risks as well as developing awareness throughout the organizational structure.

Factors Influencing Risk Culture

For a smooth journey in risk intelligence, the senior management has to be completely aware of the levers influencing risk-taking behavior of their employees. Some of the major factors that impact smart risk-taking decisions include talent management, training and education, qualification of staffs, incentives, leadership at the top of the organizational hierarchy, and the ability of an organization to take risk-based decisions.

To develop a risk-intelligent structure in business enterprises, organizations should perform a thorough assessment. This can be achieved by setting up objectives, conducting surveys and interviews, analyzing gaps, prioritizing actions, incorporating recommendations and keeping track of the effectiveness of the strategy.

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Comparing the existing culture against other influential factors such as governance, policies and procedures, competence, relationships, performance, and accountability will help the top management understand the current state of culture and the level of contribution of existing risk initiatives to create a positive impact on the business’s risk culture.

Conducting gap analysis around the influential factors will offer a better understanding of what needs improvement. To create an effective risk culture and make it work successfully to the benefit of an organization, management should continuously improve it to fit the changing business objectives and requirements.

Strengthening Risk Culture through Technology

Leveraging technology to create a centralized framework for capturing risks and organizing data elements will strengthen the risk culture to a greater extent. A risk management framework should speak a common language that is well understood throughout the organization, including stakeholders. Developing a technically assisted risk management strategy will eliminate the most common challenges faced by an organization.

A centralized data model will aid in managing risks that may arise due to external and internal events. It will also give the organization a top-down view of the business goals, global risks and controls associated with it.  A common risk environment enables effective monitoring and reporting of the gaps and risks using heat maps, dashboards, and charts. This will enhance the organization’s risk intelligence by providing real-time visibility into scores, its risk appetite, as well as limitations towards risks.

Risk and security officers will be able to get a better picture through trend analysis and obtain useful insights. A flexible framework that is developed on the basis of industry standards will provide a strong foundation for risk intelligence and aid in timely capture and categorizing of risks and initiate appropriate corrective actions.

Key Elements of a Risk Intelligent Organization

  • A risk intelligent organization follows a unified and standardized risk framework that speaks the same language across the entire organization. A framework that follows a common language is easy to understand and helps mitigate risks in a timely manner, thereby driving value.
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  • Successful creation of risk intelligence defines roles, responsibilities, and the hierarchy structure in an enterprise.
  • A centralized framework will also bolster support to business operations and a wide array of functions.
  • Creating risk intelligence will enhance performance and accountability.
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  • A risk intelligent organization will be able to strike a perfect balance between risk and reward.
  • Risk intelligent architecture offers the executive management, board members, stakeholders, and audit committees the ability to effectively perform their duties by promoting a greater level of transparency. Executive management is assigned with the task of developing, incorporating, and maintaining a robust and efficient risk management strategy and improvise it on a regular basis it to fit the changing requirements.
  • Business units are obligated to monitor the performance of their respective units and their approaches to managing risks as specified by the risk management and independent assurance functions, as well as oversight from executive management.
  • In a risk intelligent organization, finance, legal, HR, and IT units offer support to the individual departments in the organization in their efforts to mitigate risks.

The role of the internal audit is assigned with providing independent and unbiased assurance to the senior management by assessing the efficiency of the risk management practices and finding ways to enhance those strategies.