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Positioning of Penetration Testing and IT Risk Management Frameworks Investigated Positioning of Penetration Testing and IT Risk Management Frameworks investigated September 2013 Scriptienummer 1090 Jip Hogenboom MSc Nick Peterman MSc Thesis EDP Audit, Vrije Universiteit Amsterdam September 2013 “If you don’t invest in risk management, it doesn’t matter what business you’re in, it’s a risky business” Gary Cohn Jip Hogenboom MSc i Nick Peterman MSc Thesis EDP Audit, Vrije Universiteit Amsterdam September 2013 1 Preface This document is the thesis of the postgraduate study programme on EDP auditing at the Vrije Universiteit Amsterdam. This thesis covers the positioning of penetration testing within IT risk management frameworks and the relationship between IT risk management and penetration testing. We would like to express our thanks to Dr. René Matthijsse RE, our supervisor at the Vrije Universiteit, for his support and criticism. Additionally, we would like to express our thanks to Mr. Michiel van Veen MSc RE and ir. Peter Kornelisse for their support during the course of the project. We would not have come this far without them. Furthermore, we would like to thank the participants to our case study interviews for their time and availability to express their opinion and share their experience on this subject. Last but not least we would like to thank our families for their support and their patience with us during our study. Without them we definitely would not have made it. Jip Hogenboom Nick Peterman Amstelveen, September 2013 Jip Hogenboom MSc ii Nick Peterman MSc Thesis EDP Audit, Vrije Universiteit Amsterdam September 2013 2 Abstract Risk management is an important step within each business process and project to minimise, monitor, and control the probability and/or impact of unfortunate events or to maximise the realisation of opportunities. The risk management process generally contains four steps: Determine Assets, Analyse risks, Select applicable controls and test the controls. By performing these four steps, organisations can attempt to minimise the amount of risk they face. One method of identifying IT-related risks is by performing penetration testing. A penetration test should be performed by a qualified professional and is aimed to identify vulnerabilities and weaknesses on application layer, operating system layer, database layer and network layer. These vulnerabilities can be the result of e.g. inadequate patching, development or system management. Penetration testing is described as a part of security testing. Security testing itself is covered in IT security frameworks which describe various steps and activities to obtain an appropriate overview of the current status of the security within an organisation. In this thesis, the positioning of penetration testing within three IT risk frameworks is investigated. The use of penetration testing provides additional insight in the IT-related risks organisations face. However, we noted that penetration testing is inadequately covered in the researched IT risk frameworks. It is either not mentioned at all, or it is only mentioned as a possible action to aid in control testing. However it is never included as a mandatory activity or as a requirement for proper risk analysis. The investigated IT risk frameworks occasionally refer to IT security frameworks for further reference to perform security testing. However, we believe that any user of the IT risk framework should be guided to initiate mandatory penetration testing activities. Therefore, we feel that the use of penetration testing should be directly incorporated in the generic IT risk frameworks. Our intention is to improve the general IT risk management process and the overall security of computer systems, networks and organisations in general. We propose updates to the IT risk frameworks to improve upon the identified shortcomings using the advantages penetration testing provides. These additions can be incorporated to update the frameworks in order to put more emphasis on penetration testing within the risk management process. We have interviewed experts in both the risk management and in the security testing field and we were informed that penetration testing is a valuable method to identify IT-related risks which may not have been identified using other methods. During these interviews it was also noted that the use of IT risk management frameworks alone is not sufficient to determine all possible vulnerabilities and risks organisations face. Jip Hogenboom MSc iii Nick Peterman MSc Thesis EDP Audit, Vrije Universiteit Amsterdam September 2013 Contents 1 Preface ii 2 Abstract iii 3 Introduction 1 3.1 Research question 4 3.2 Approach 4 3.3 Scoping 5 4 Penetration testing and security management 87 4.1 Introduction 87 4.2 Penetration testing 87 4.2.1 How is penetration testing performed? 98 4.2.2 What are the limitations? 109 4.3 Penetration testing methods 109 4.3.1 KPMG security testing method 1110 4.3.2 SERSC penetration testing method 1312 4.3.3 SANS penetration testing method 1615 4.3.4 NIST 800-115 penetration testing method 1716 4.4 Comparison 1918 5 IT Risk Management 2220 5.1 Introduction 2220 5.1.1 A framework for integrated risk management in IT 2220 5.1.2 Conclusion 2523 5.2 IT Risk Frameworks 2624 5.2.1 American standard: NIST 800-30 – Guide for conducting risk assessments – Information security (2011): 2725 5.2.2 International organisation: ISACA – Risk IT 3028 5.2.3 International standard: ISO/IEC TR 15443:2012 – Framework for IT security assurance 3230 5.3 Risk Categories in frameworks 3634 5.3.1 American standard: NIST 800-30 – Guide for conducting risk assessments – Information security (2011) 3634 5.3.2 International standard: ISO/IEC TR 15443:2012 – Framework for IT security assurance 3735 5.3.3 International organisation: ISACA – Risk IT 3735 6 Interview findings analysis: 3936 6.1 Approach 3936 Jip Hogenboom MSc iv Nick Peterman MSc Thesis EDP Audit, Vrije Universiteit Amsterdam September 2013 6.2 Summary of interviews 4037 6.2.1 X1 - PCD (Process Control Domain) Security Auditor 4037 6.2.2 X2 – Incident analyst 4138 6.2.3 X3 - Manager IT Advisory – Security 4239 6.2.4 X4 - Director IT Advisory – Security 4441 6.3 Main conclusion 4542 7 Conclusions and recommendations 4743 7.1 Conclusion 5743 7.2 Positioning of penetration testing in IT Risk Frameworks 4744 7.2.1 NIST 800-30 – Guide for conducting risk assessments – Information security (2011) 4845 7.2.2 ISO/IEC TR 15443:2012 – Framework for IT security assurance 4946 7.2.3 ISACA – Risk IT 4946 7.2.4 Summary of risk categories 5047 7.3 Recommendations 5248 7.3.1 Suggestions for updates to the IT Risk Frameworks 5248 7.3.2 Suggestions for improvement Error! Bookmark not defined.48 7.3.3 NIST 800-30 – Guide for conducting risk assessments – Information security (2011) 5248 7.3.4 ISO/IEC TR 15443:2012 – Framework for IT security assurance 5349 7.3.5 ISACA – Risk IT 5450 8 Research questions revisited 5752 9 Bibliography 6357 9.1 List of Figures 6458 Jip Hogenboom MSc v Nick Peterman MSc Thesis EDP Audit, Vrije Universiteit Amsterdam September 2013 3 Introduction Risk management is an important step within each business process and project to minimise, monitor, and control the probability and/or impact of unfortunate events or to maximise the realisation of opportunities. The strategies to manage risks typically include risk avoidance, risk mitigation, risk acceptance or transferring the risk to other parties. In this thesis, we will consider IT security related risks and will not consider generic risk management, therefore we will cover risks on the network infrastructure, database, operating system and application level. One of the core activities for one of the authors of this thesis (N. Peterman) is IT risk management. An effective method for identifying risks which are applicable to a specific environment/process is by performing a penetration test or other specific security related tests. The core activities of one of the authors of this thesis (J. Hogenboom) are penetration testing, technical security testing and security configuration reviews. Penetration testing activities are considered to be a subset of security testing. Security testing is the process of exercising one or more assessment objects under specified conditions to compare actual and expected behaviour. [1] Security testing activities and guidelines are generally covered in security frameworks such as NIST 800-115 [1] and ISO 27001. The term security framework is used in a variety of ways, but it has become an aggregate term for the various documents and associated programs from various sources, that give advice on topics related to information security. In particular with regard to planning, managing or auditing of overall information security practices for a given organisation. [2] IT Security frameworks cover a broad range of activities and are a part of overall risk management frameworks. These frameworks cover the whole spectrum of risk management activities. Figure 1: Security testing hierarchy Jip Hogenboom MSc 1 Nick Peterman MSc Thesis EDP Audit, Vrije Universiteit Amsterdam September 2013 The main purpose of this thesis is to provide the reader with an overview of three IT risk frameworks and the positioning of penetration testing in these risk frameworks. We will provide recommendations on how to improve the risk frameworks to include identified gaps. We believe that penetration testing should be an essential part of each IT risk framework to ensure it is on the radar of the risk management departments. Performing penetration testing should not be dependent on the use of the underlying IT security frameworks, but should be directly incorporated into the risk frameworks. Risk A risk can be regarded as a potential situation that might or might not occur in the future. Risk is defined by two characteristics, the probability of occurrence (likelihood) and the consequences of the occurrence (impact).
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