Cyber insurance may be null and void without ‘due care’
There is a worrying trend in the world of cyber safety. Many companies believe that cyber insurance will protect against any damage associated with a breach. It is vital that senior board members are aware, however, that if they fail to take reasonable precautions their insurance investment could well be null and void.
Leading business insurer Allianz estimates that the cyber insurance market in Europe alone is on track to be worth nearly $1 billion by the end of 2018, mirroring the rapid expansion of the US cyber insurance market. Although the global insurance industry sees it as a valuable new market full of opportunity they are, predictably, measuring their response with caution.
Cyber insurance has, in the past, been considered a safety net in the event of a breach. But as the incidence of cyber breaches continues to rise so has the level of caution demonstrated by both the government and the insurance industry. In fact, while governments are promoting the cyber insurance market, especially in the US and the UK, they are also using the insurance market as a lever to drive much needed cyber security improvements in the business sector.
According to Phil Huggins, Vice President of Security Science at Stroz Friedberg: ‘Their [the government’s] expectation is that this will align risk assessments with good practice, while incentivising good risk management, thereby reducing the need for direct government involvement and regulation. The recent launch by the UK Government of the ‘UK cyber security: the role of insurance in managing and mitigating the risk’ report is just the latest manifestation of this strategy.’
The strategy is working. Insurers are incentivising behaviours that reduce the potential for harm, including the term ‘due care’. This refers to the precautions ‘a person of ordinary prudence’ would take to safeguard their systems. Demonstrable cyber resilience has become a requirement for cyber insurance and this in turn is driving an increased demand for Retained Forensics.
The essence of Retained Forensics is to develop cyber resilience through the engagement of a small team of industry professionals who are fully briefed about the scope of an organisation’s network and infrastructure. This enables them to:
- establish, direct and manage a full test and exercise programme;
- ensure high level management of cyber defences across all network and infrastructure;
- be on hand and ready to assist in putting the agreed action plan in place in the event of a breach. In this way, the 72 hour reporting element of GDPR will be achievable and the mitigation process will be well in hand before the deadline.
SRM has an international reputation for providing the full range of Retained Forensics services including automated and manual penetration testing, Red Teaming, Incident Management, Disaster Recovery and Business Continuity Management. Through Retained Forensics, ‘due care’ can be demonstrated making an organisation not only less likely to suffer a breach, but able to demonstrate best practice in the event of an insurance claim.
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The GDPR compliance fallacy
The A to E of cyber maturity
How PCI compliance puts you on course for GDPR
Retained Forensic & Incident Response Service: how planning for the worst can add value to your business
By Paul Brennecker, Principal Security Consultant and Lead QSA
Paul Brennecker gave a presentation at PCI London on 5th July 2018 and this article first appeared in that event’s publication.
All too often the engagement of a Forensic Investigator is a distress purchase, made at a time of crisis when a breach has already occurred. Yet, waiting until there is a full blown emergency means organisations are missing out on the added value that specialist Retained Forensics professionals can bring.
Forensic Investigators don’t just operate in a crisis. When engaged to provide a Retained service, they can also help to develop a resilient defence strategy. This combines developing and delivering a full strategic cyber defence plan with Incident Response management. Their strategic guidance and practical knowledge enables them to help organisations reduce the level of impact while also meeting legal and regulatory responsibilities in the event of a breach.
In the event of a breach being reported, the Information Commissioner’s Office has made clear that it will look at the level of security in place, as well as the Incident Response strategy when considering the fines it will impose.
With forward planning it is possible to ensure that you get the maximum return for your investment and also secure the service that is best for your business. In business terms, a distress purchase is defined as a purchase made at some critical point, usually during a failure of other unplanned event. This is like buying a plastic cape when caught out in heavy rain: it is unlikely to be the best waterproof nor the best value for money but the purchase was forced by extreme circumstances. Similarly, that present bought in the late afternoon on Christmas Eve may turn out to be the most expensive gift ever purchased.
In today’s cyber security landscape such critical points come, not surprisingly, when least expected. No one can know when a breach or a security incident will take place. One day you are blissfully unaware of its existence; the next you are in a state of crisis with much to do in a very short period of time. This is particularly the case under the terms of GDPR which requires data breaches to be reported within 72 hours. GDPR also requires that you implement robust breach detection, investigation and internal reporting procedures.
One of the first tasks is to secure and contain the breach – a specialist job which can be time consuming and confusing – and for this an industry specialist must be appointed. There are not a vast number of suppliers to speak to. For example, when it comes to a PCI data breach, there are only eight companies in the UK which hold the necessary certifications required by the acquiring banks.
A cyber mature organisation knows that it is not enough to simply be reactive, however. Their aim is to anticipate the critical point and to scope, develop and implement a company-wide cyber security strategy which is constantly challenged and re-enforced. This type of strategic plan will help to ensure effective business continuity and protect from loss of income and reputation.
Working with a Retained Forensics specialist facilitates this strategic approach; from analysing potential weaknesses, to making detailed plans in the event of a breach. This is done in a number of ways, including through the process of Test and Exercise, starting with automated penetration testing to identify potential vulnerabilities. Manual testing is then employed to exploit and develop these weaknesses so the gaps can be plugged. The synergy of these tests provides valuable intelligence about where existing vulnerabilities lie and helps a business to build a robust defence around them.
The world of cybercrime does not stand still, however, and so defences must be continually reviewed and challenged to ensure they are as up to date as possible. So, although PCI compliance for example, is a vital annual check, it does not claim to guarantee that adequate defences are in place all year round. A more resilient strategy therefore uses a regular Test and Exercise programme to keep the process agile and responsive.
Where it is advisable to go a level deeper, organisations can also consider Red Team engagement. Red Teaming is where highly skilled and trained ethical hackers get into the mind-set of a potential adversary, using a range of tools and strategies. This enables organisations not only to identify where a potential attack might take place but also builds in a level of resilience by identifying where potential future vulnerabilities may lie.
The mature organisation works with Retained Forensics to scope the requirements of their business, making it possible to manage the whole process in a timely and cost-effective manner. While building a robust defence is a priority, making detailed plans for how to handle a crisis is equally important. It is perhaps counter-intuitive to plan for a successful attack, but the maxim ‘expect the best but plan for the worst’ is sound advice. Knowing how to react in the unfortunate event of a data breach is a crucial business benefit. An experienced Retained Forensics company will be able to assist you with your plans and help to stage an event, to get everyone into the right mind-set. If the worst does happen, then staff will have a framework to refer to, ensuring that vital steps are taken and time is not lost.
A Retained Forensics team will also undertake the preparation and testing of Incident Response, Business Continuity and Disaster Recovery plans to ensure they are up to date and ready to swing into play at the first sign of an incident. Not only will they have a detailed knowledge of an organisation’s systems and networks, they will have helped to set up breach notification protocols and mitigation strategies; all of which will already be in line with the requirements of GDPR. In this way any damage and disruption will be swiftly minimised and mediated.
Given the benefits of engaging a Retained Forensics service, it is perhaps surprising that some still overlook it, simply engaging a Forensic Investigator when compelled to in the event of a breach. The reason for this is perhaps that the challenge of managing third parties to achieve and maintain the various data standards and compliance is ever increasing, meaning that the procurement of services to assist in the event of a data breach is often overlooked.
Those who plan for the worst while hoping for the best, however, reap significant benefits and have the time to engage with a professional Retained Forensics service before a crisis occurs. By planning ahead, they ensure that they get the maximum return for their outlay and also secure the service that is the best for their business.
The Industrial Revolution v4.1: with increased opportunity comes increased vulnerability
If history teaches us one thing it is that there is no going back. It started with the First Industrial Revolution which used water and steam power to mechanise production. This was followed by the Second which used electricity and the Third which used electronics and information technology. With the Fourth Industrial Revolution we have seen a fusion of digital technologies, the use of the Cloud and extensive data management. But arguably we are now entering an additional phase which includes the integration of physical devices, vehicles, home appliances embedded with electronics, software, sensors, actuators and connectivity, sometimes known as The Internet of Things. This is the Industrial Revolution v4.1.
This new era of technological revolution presents unprecedented opportunities for innovation, diversification, agility and cost optimisation. Yet with these increased opportunities also comes an increased level of vulnerability.
The latest report by Kapersky (2018) provides some statistics around the global cost of data breaches, revealing that the average business now spends 27 per cent of its IT budget on cyber defence. This investment is essential given the potential financial losses likely to be incurred in the event of a breach.
In addition to the cost of the breaches themselves in terms of fines and lost revenue, the report shows that for larger organisations the damage goes even deeper with an average loss of $144,000 due to damage to their credit rating and higher insurance premiums and an additional spend of $113,000 on Public Relations exposure to repair and rebuild brand damage following a breach.
We must therefore also ask ourselves how organisations can defend themselves and be resilient to the inevitable attacks. There are four key areas:
1. Testing: Penetration Testing using a synergy of automated and manual testing to investigate and explore vulnerabilities, identifying potential areas of weakness; Red Teaming: using the skills of highly qualified individuals to simulate a real-world attack, designed to assess the suitability of the current security programme and offer remediation advice where appropriate;
2. Disaster Recovery: taking a strategic approach to managing staff in the event of a successful attack, minimising damage to brand reputation and safeguarding the interests of key stakeholders;
3. Retained Forensic Remote Support: having access to a specialist team 24/7, 365 days of the year to provide professional, pragmatic and strategic support in the event of any type of incident, enabling organisations to focus on maintaining business as usual;
4. Business Continuity: developing a Business Continuity Management (BCM) plan which is applied consistently across the entire enterprise with senior management’s support to make a significant difference in the ability of the organisation to achieve high level cyber resilience, protecting financial and reputational assets.
SRM provides the full range of these services using the integrated specialisms of highly-qualified and experienced consultants. Working with organisations to enhance their data security and to demystify the threat landscape, our team brings market-leading knowledge with a first class service.
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The flaw in the plan: business continuity management
Penetration testing: man vs machine
What is Red Team Engagement?
The A to E of cyber maturity
The A to E of cyber maturity
In a recent report, the Philippine government’s Department of Information and Communications Technology (created in 2016) outlined a scale of cyber resilience based on an A to E grading system. With ‘A’ being the most robust in terms of cyber security maturity and ‘E’ being the weakest, it put the Philippines in class D. The reasoning behind this grade stems from the fact that they are reactive to attack using only the available tools and technologies. They do not proactively seek out vulnerabilities and exploit them to ascertain the extent of a weakness. Nor do they deploy cutting edge strategies or prepare for the process of remediation to address the issues ahead of time.
This reactive approach is not limited to the Philippines. Far from it. In fact, these same principles can be applied to a frightening number of organisations across the globe. Those who simply react are always behind the curve, attempting to patch and mediate the impact of attacks on an ad hoc basis. An immature organisation focuses simply on prevention and regulatory compliance but with limited co-ordination, using basic technology and simple configurations.
In contrast, those with cyber maturity demonstrate their vigilance by employing a proactive strategy rather than simply waiting for a breach to occur. So what are the characteristics of cyber maturity?
- To begin with, in a mature organisation, cyber security is not seen as something that should be done, but is already embedded within the fabric and culture.
- Information and cyber security is not the responsibility of an overstretched CISO, who reports only to the head of the IT department. It is in the hands of a CISO who is well resourced, supported and who exerts confident influence at board level.
- Information security policy and testing is documented and has a formal structure, using automated tools, regularly scanning systems and web applications to identify any vulnerabilities in a proactive way.
- A mature organisation has built-in enterprise security technology architecture and strict focus on incident prevention, detection and response; regularly undertaking advanced and manual penetration testing to uncover weaknesses in the ever-changing scope.
- Business Continuity and Disaster Recovery Planning are integral to a mature organisation, together with the associated training across all staff, not just those within an IT or infosec department.
Our recent blog post on the topic of the NHS’ response to WannaCry highlights a ‘work in progress’ but certainly an admirable move towards cyber security maturity. Their plans centre around Test and Exercise methods, and are inclusive of annual Red Team Engagements to push their plans to the limits and ensure complete peace of mind.
SRM’s Test and Exercise (T & E) team works with all sizes and types of organisation to achieve cyber maturity. With wide experience in other areas of information security consultancy the T & E programme is not conducted in isolation but within the wider context of a client’s business activity. Every project is bespoke and our team includes consultants who are CREST ethical security testers as well as those with the Offensive Security Certified Professional (OSCP) qualification. Additionally, we often work with CISOs and organisations to develop and implement proactive robust and innovative T & E plans.
For more information on our T & E team, visit our website.
See a recording of our webinar: Incident Response & Forensic Expertise – would your business survive a cyber attack or security breach?
Or see our blog:
What we can all learn from the NHS response to WannaCry
Three stages to building a robust defence against external threats
Cyber resilience: it’s a board level issue
What we can all learn from the NHS response to WannaCry
To be truly resilient against potential attacks, it is not enough to simply look at patching the last one, but to anticipate the next. When commenting on the news that the NHS had not fared well in the recent round of cyber security checks, Matt Hancock, Secretary of State for Digital, Culture, Media and Sport summed up the issue.
He said on BBC Radio 4 last month that ‘The NHS has made improvements since the WannaCry attack last year, but one of the challenges in cyber security is that the criminals and the malicious actors who are trying to harm our space are moving fast, and you have to run to stay still. You can’t just make one update, you’ve got to constantly be updating’. NHS cyber security chiefs described their existing practices as ‘relatively unsophisticated’, and admitted that 88 of the 236 trusts that were assessed by NHS Digital failed to pass the required cyber security standards.
In spite of the negative publicity surrounding the event, the report did state that WannaCry’s lasting effect would have been significantly more widespread, had it not been so quickly disabled. With this issue front of mind, the Former Chairman of NHS Digital still blamed ‘a lack of focus and a lack of taking it seriously’.
So what actions are in the pipeline in order to safeguard the UK’s health service? Of course, every hospital authority will be ensuring that all software update patches are installed, after this proved to be the crippling weakness of the 80 trusts affected in last year’s cryptoworm attack. The majority of trusts had acted on this but the hesitation came from the potential implications and disruption to other IT and medical equipment.
Along with praising the initial response, it should be said that the robust plans going forward are setting the bar for others to follow. A cyber security ‘handbook’ is being issued to all employees, along with ongoing staff training and development; bringing the issue to the forefront and ensuring that everyone has their part to play.
Robust Incident Response, Business Continuity and Disaster Recovery plans are soon to be in place, reducing disruption to the operations even further in the event of an attack. This is to be reviewed and changed annually, in line with industry best-practice. It will work in tandem with both an annual ‘cyber incident rehearsal’ and Red Team-style engagements using ethical hacking teams that will consistently carry out both manual and automated penetration testing to the NHS networks. Finally, this links to their plans to appoint a CISO, after recognising that cyber security is indeed a board level issue and should be dealt with as such, as soon as possible.
It is these key practises that businesses across the globe should be looking to adopt into their next information security strategies. If your organisation is looking to mirror the proactive efforts of the NHS, SRM’s specialist solutions encompass the full scope of the governance, risk and compliance agenda. The trusted partner of government agencies, high street brands and SMEs alike, our bespoke and consultative approach enables our clients to achieve peace of mind.
To discuss how our services can help you stay safe in cyberspace, contact Mark Nordstrom on email@example.com or 03450 21 21 51. Or visit our website.
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