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Fri, Apr 13, 2007 9:34 EDT

Risk, Not Security

Topic: IT Organization Management

Blog: Koch's IT Strategy

Current Rating: 5 Comment: 1

We have to shift the emphasis on IT security to larger discussion about business risk. Why? Because we associate IT security with things that have become a very small subset of a much larger and continually growing circle of information technology risk.

Think this is just pointless semantics? Consider this: We have been trained over time to associate IT security with certain actions--protecting the perimeter of the data center, for example--and certain products--intrusion detection, encryption, firewalls, anti-virus software, etc.--that are all merely tactical and do not address any of the real strategic issues in protecting people and organizations from threats.

Here's an example: Ask consumers what they should be doing about internet security and they'll probably say (if they even know) that they should install firewall and anti-virus software on their computers and keep them updated. Few, if any, of these people would consider a wireless router to be a security device, yet the risk that wireless routers pose to their safety online is much higher than the risk that something will sneak through anti-virus software.

In this study, researchers Rajiv Shah and Christian Sandvig found that only about 50 percent of consumers changed the default settings of their wireless routers to switch on encryption and rewrite the default administrator passwords that are easily available to anyone with an internet connection and a web browser. It's also pretty easy to find people's router locations--there are maps of them available.

Wireless routers represent a huge, emerging risk even though we still don't think of them as part of security. An open router is like a key to the kingdom, "a gateway for eavesdropping, redirection to fraudulent websites, and traffic profiling. These capabilities grant the attacker nearly total control over how the network’s clients interact with the Internet," writes Markus Jackobsson, an academic and security consultant in this chilling report.

But there's been no shift in the configuration of routers since they were originally introduced--when the extent of their risk was considered to be only that some freeloader would jump on and hog your bandwidth. Routers haven't made it into that small circle that we think of as IT security, so the larger risks aren't addressed.

By limiting our scope to IT security rather than risk, we ensure that the emphasis remains tactical rather than strategic. What's the tactical response to open routers? Provide consumers

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Fri, Apr 13, 2007 15:23 EDT
Anonymous user
Posted by: Anonymous
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Another impressive entry, Mr. Koch. Underlying this whole article is one other issue: business leaders are not being held accountable for their lack of management over technology.

We think that by putting a CIO in place that "solves the problem". Thinking about the business, its risks and opportunities, its state and prospects, is every executive's job. While the use of a professional leader with domain expertise is a good idea - no one really wants someone with a background in sales running finance, or someone with a backgorund in regulatory affairs in charge of H.R., for instance - abdicating responsibility in the way North American business does indicates a degree of managerial irresponsibillity that needs more than just outside bodies (e.g. insurers) to step in.

There should be more blood on the carpet than there is, even in this SOX-laden world.

So what would help? Executive committees are our answer to managing boards in European companies. But they don't really act on issues. So boards of directors, representing investor interests, need to step in and demand that the company actually be managed. Here is a place where Directors & Officers insurance could be used to make that change happen - want a policy, demonstrate you actually do manage the business in all its aspects.

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