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Navigating Technology Risks

One of the key questions being asked by audit committees and boards of directors of organizations around the globe is whether their emerging technology risks are being properly identified and managed. To that end, the Global Internal Audit Common Body of Knowledge (CBOK) released “Navigating Technology’s Top 10 Risks,” which identifies the top technology risks and ways that organizations can learn about and address these risks.

Here are the top five out of 10 risks ranked by the study:

1.      Cybersecurity

One of the biggest cybersecurity risks faced by companies is the possibility of theft of confidential data by external perpetrators, and the study found this is the most discussed IT topic among executives, internal auditors, audit committees and the board. One of the biggest cybersecurity risks faced by companies is the possibility of theft of confidential data by external perpetrators.

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More than 70% of survey respondents consider the risk of a data breach to be extensive or moderate, while 82% of IT specialists consider this risk to be even higher.

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2.     Information Security

With the recent spotlight on data breaches, the current focus is a layered defense of critical information rather than a single layer of protection.

A strong information security program encompasses:

● Robust risk assessment process

● Effective governance and compliance procedures

● Documented and communicated information security policies and standards

● Effective security awareness training program

● Efficient access control procedures

● Tested disaster recovery, business continuity and incident response programs

● Operational asset management, network management, patch management and change management processes

● Tight physical security

3.     IT Systems Development Projects

While organizations need to update their technology systems, success rates are low. The study found that the success of systems development projects was 16.2% for overall success, 52.7% for challenged projects and 31.

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1% for impaired or canceled projects.

Examples of project objectives not achieved include missed deadlines, cost overruns, efficiencies not delivered as expected, flawed software that was not tested before implementation, reduced integration from the initial plan and less functionality than was identified in the business case when the project was approved.

4.     IT Governance

In many organizations, management questions the amount of money spent on IT and increasingly monitors IT costs. This added emphasis is also due to the widening gap of what IT thinks the business needs and what the business thinks IT can deliver.

A good IT governance program must have these elements:

● Clear alignment to business

● Measurable value delivery to business

● Accountable controls of resources, risk, performance and cost

IT Governance Activity

5. Outsourced IT Services

Because of the increased focus on IT costs, some key IT services have been outsourced. According to the study, this can expose an organization to risks that may remain undiscovered until a failure occurs. An average of six out of 10 internal auditors surveyed said they expect an increase in audits of outsourced IT services over the coming year, according to CBOK, which is administered through the Institute of Internal Auditors. The largest increase is expected in Sub-Saharan Africa and the smallest in Europe.

Risk Link Roundup

Here are a few articles that caught my attention during the past week highlighting some interesting issues impacting the world of risk and insurance. They include tips on handling cyber disputes, news about the coming El Niño, Department of Labor remote work policies, how students at Butler University are establishing a captive insurer and an interesting look at potential FCPA lessons learned from the July death of Cecil the Lion.

5 Tips for Success in Cyber Litigation

Insurance Thought Leadership: Many insurance coverage disputes can be, should be and are settled without the need for litigation and its attendant costs and distractions. However, some disputes cannot be settled, and organizations are compelled to resort to courts or other tribunals to obtain the coverage they paid for, or, with increasing frequency, they are pulled into proceedings by insurers seeking to preemptively avoid coverage. – See more at: http://insurancethoughtleadership.com/5-tips-for-success-in-cyber-litigation/#sthash.m6sFEr8X.dpuf

El Niño and La Niña: Weather Patterns that Could Impact Your Business

Interstate Restoration: “…the Godzilla El Niño.”“All Signs Indicate a New Monster El Niño is Coming.” These quotes aren’t from a new action movie. They are just a couple of examples of the dramatic headlines and descriptions about the potential of this year’s El Niño. Since most of the stories hearken back to the El Niño of 1997 – 98—the strongest on record—it’s understandable if you’re concerned about the potential impact that of this year’s El Niño on your business. But depending on where you’re located, you may or may not need to worry.

DOL Forcing Everyone to Change Remote Work Policies: Pitfalls to Avoid

HR Morning: If the DOL’s new overtime regs go through as written — and there’s every indication to believe they will — employers of all stripes will have much more than just classification issues to contend with.

Grant Helps Butler Create Student-Run Insurance Company

Butler University Newsroom: The Butler University College of Business will establish a student-run insurance company with the goal of having the company fully operational by the 2019–2020 academic year, thanks to a $250,000 gift from MJ Insurance and Michael M. Bill.

On the Death of Cecil the Lion and the FCPA

Compliance Week: Cecil the Lion was shot and killed in July. What does the death of this well-known and well-beloved lion in Zimbabwe have to do with the Foreign Corrupt Practices Act? More importantly, what are the lessons to be learned by any chief compliance officer or compliance professional from this event? Much more than you would first think, actually.

POS System and Critical Infrastructure Attacks, Hactivism Pose Top Cyber Threats

Maintaining enterprise security only gets more difficult, as additional means of cyberattack and increasingly sophisticated techniques are added to attackers’ arsenal.

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“Our personal and professional attack surfaces have never been greater, and they are only expected to grow as organizations and individuals continue to increase their reliance on the digitally connected world for a variety of tasks,” explained researchers from network infrastructure and security services company Verisign. “Security practitioners must not only protect their enterprise assets, but also guard against threats to their supply chain and other business ecosystems.

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These threats, coupled with the cyber threat landscape’s continuous evolution in terms or actors, tactics and motivations, have created a situation where organizations must now move toward an intelligence-driven, holistic security approach to keep pace with the rapid changes in attackers’ tactics, techniques and procedures (TTPs).”

According to Verisign’s “2015 Cyber Threats and Trends: What You Need to Know to Protect Your Data,” the top cyberrisks from 2014 and the first half of 2015 came from:

  • attacks on point-of-sale (POS) systems
  • banking trojans and downloaders
  • various forms of hacktivism
  • critical infrastructure attacks
  • open-source software exploitation
  • vulnerability research “crowdsourcing”

Check out the infographic below for some of the report’s key insights into the top cyberthreats and the biggest vulnerabilities for enterprise security:

verasign cyber threats trends 2015

The Rise of Malvertising

malvertising cyber security

LAS VEGAS—One of the hottest topics in cyberthreat detection right now is the rise of malvertising, online advertising with hidden malware that is distributed through legitimate ad networks and websites. On Monday, Yahoo! acknowledged that one of these attacks had been abusing their ad network since July 28—potentially the biggest single attacks, given the site’s 6.9 billion monthly visits, security software firm Malwarebytes reported.

In the first half of this year the number of malvertisements has jumped 260% compared to the same period in 2014, according a new study released at the Black Hat USA conference here today by enterprise digital footprint security company RiskIQ. The sheer number of unique malvertisements has climbed 60% year over year.

“The major increase we have seen in the number of malvertisements over the past 48 months confirms that digital ads have become the preferred method for distributing malware,” said James Pleger, RiskIQ’s director of research. “There are a number of reasons for this development, including the fact that malvertisements are difficult to detect and take down since they are delivered through ad networks and are not resident on websites. They also allow attackers to exploit the powerful profiling capabilities of these networks to precisely target specific populations of users.”

How does malvertising work—and why is it taking off right now? “The rise of programmatic advertising, which relies on software instead of humans to purchase digital ads, has generated unprecedented growth and introduced sophisticated targeting into digital ad networks,” the company explained. “This machine-to-machine ecosystem has also created opportunities for cyber criminals to exploit display advertising to distribute malware. For example, malicious code can be hidden within an ad, executables can be embedded on a webpage, or bundled within software downloads.”

The study also noted that, in 2014, there was significantly more exploit kit activity (which silently installs malware without end user intervention) than fake software updates that require user consent. In 2015, however, fake software updates have surpassed exploit kits as the most common technique for installing malware. Fake Flash updates have replaced fake antivirus and fake Java updates as the most common method used to lure victims into installing various forms of malware including ransomware, spyware and adware.

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Last week, enterprise security firm Bromium also released a new study focused on the rising threat of malvertising, finding that these Flash exploits have increased 60% in the past six months and the growth of ransomware families has doubled every year since 2013.

“For the last couple of years, Internet Explorer was the source of the most exploits, but before that it was Java, and now it is Flash; what we are witnessing is that security risk is a constant, but it is only the name that changes,” said Rahul Kashyup, senior vice president and chief security architect at Bromium. “Hackers continue to innovate new exploits, new evasion techniques and even new forms of malware—recently ransomware—preying on the most popular websites and commonly used software.”

One of the riskiest aspects of these exploits is that users do not have to be accessing sites that seem remotely suspect to be exposed. According to Bromium’s research, more than 58% of malvertisments were delivered through news websites (32%) and entertainment websites (26%). Notable websites unknowingly hosting malvertising included cbsnews.com, nbcsports.com, weather.com, boston.com and viralnova.com, the firm reported.

With that in mind, IT and cybersecurity teams have to adapt to meet these new threats, which are evolving far faster than detection tools, including antivirus, behavioral analysis, network intrusion detection, and the basic safe browsing guidelines issued to employees regarding their use of work devices.

“The key takeaway from this report is that, at large, the Internet is increasingly becoming ‘untrustworthy.’ Attackers are now using popular websites to launch malware via online ads, which makes things difficult for IT security teams,” explained Rahul Kashyup, SVP and chief security architect at Bromium. “This risk should be well understood and factored in for any organization while building a ‘defense-in-depth’ security stack. Regular patching and updates definitely help to limit the exposure to potential attacks, but that might not be feasible for large organizations.

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It is advisable to evaluate non-signature based technologies that can thwart such attacks in a reliable way and prevent infections on end-user devices.

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According to Bromium, the websites that most frequently serve as malvertising attack sources are:

malvertising attack sources