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ISACA's Risk IT in a Cloud-Based Environment

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ISACA's Risk IT in a Cloud-Based Environment ISACA’s Risk IT in a Cloud-based environment Kamal Khan, CISA, CISSP, MBCS, CITP Director, ISACA London Chapter March 2020 Confidential. For internal use only. Agenda • Introduction • Risk IT • Using Risk IT in a Cloud Environment • Conclusion Introduction • Kamal Khan, Director of ISACA London Chapter • Over 30 years experience in Information Systems Audit and Control • Worked in Banking, Utilities, Oil and Gas industries • Worked on initial version of Risk IT and current one which is being revised as Subject Matter Expert • ISACA London Chapter: • ISACA® is the voice of the information systems audit, IT governance, risk management and cybersecurity professions. • The ISACA London Chapter • First in the UK • Established in 1981 • Over 4,200 members, largest in the world Risk IT Confidential. For internal use only. Who uses a formal risk management process for their Cloud environment? Who has heard of ISACA Risk IT? What is Risk IT • An ISACA publication. • An end-to-end, comprehensive view of all risks related to the use of IT • Consists of two documents • The Risk IT Framework • The Risk IT Practiotoner Guide Risk IT Principles Confidential. For internal use only. Can we treat Risks in IT separately Enterprise Risk? Risk Universe • IT Risk is a component of the overall risk universe • Also a component of Strategic Risk, Environmental risk etc Enterprise Risk Strategic Environmental Market Operational Credit Compliance Risk Risk Risk Risk Risk Risk IT-related Risk IT Programme and Project IT Operations and IT Benefit / Value Risk Delivery Risk Service Deliivery Risk Risk Culture Conservative Aggressive Risk Taking Risk Taking Behavriour Towards Taking Risk Risk Learning Culture Compliance Culture Behavriour Behavriour Towards Towards Negative Policy Blaming Outcomes Compliance Non- Culture compliance Risk IT Principles Connect to Business Objectives • Risk IT is about business risk Function as Align IT Risk related to the use of IT: part of daily with ERM • Always connect to business objectives activities • Align the management of IT-related business risk with overall ERM Risk IT • Balance the costs and benefits of managing Principles IT risk • Establish the right tone from the top and define and enforce personal accountability Establish Tone Balance Cost / at the Top and Benefit of IT for operating within tolerance levels Accountability Risk • A continuous process and part of daily activities Promote fair and open communication Risk IT Framework Confidential. For internal use only. Integrate Activities Risk IT Framework with ERM Processes Risk- Common aware risk view Decisions RISK GOVERNANCE IT risk management practices Domain are embedded in the Activities enterprise Collect Processes Activities Processes Articulate Risk Data Maintain Business Analyse Manage React to Risk Objectives Risk Risk Events Profile RISK EVALUATION RISK EVALUATION IT-related risks and IT-related risks and Domain opportunities are identified, opportunities are identified, analysed and presented in Domain analysed and presented in Communication business terms business terms Risk Governance Confidential. For internal use only. Common Risk View Defining a Risk Universe • Objective: • Define: • Considerations in a Cloud • Define and • The Entity environment: describe the overall • External Environment • Ceding control to the Cloud Provider (CP) environment subject to risk • Internal Environment • Impact on the organization’s strategy and management • Risk Management capacity to meet its mission and goals Capability • Impossibility of complying with the security • IT Management Capability requirements • Deterioration of performance and quality of service • Introduction of compliance challenges. Risk Evaluation Confidential. For internal use only. Analyse Risk Estimate IT Risk • Objective: • IT Risk Scenarios: • Cloud environment risk example • Define and • Actor or scenario: understand IT- • Threat type • Actor: External attacker related risk using risk scenario • Event • Threat Type: Malicious act analysis. • Asset / Resource • Event: Disclosure • Risk scenario • Time: Timing, Duration, • Asset: Encryption Keys analysis is a Time lag • Time: Immediate downtime / Data may not technique to make be recoverable / Immediately detected IT risk more concrete and tangible Negative Example Scenarios Positive Example Scenarios Time Actor Event Threat Type Asset Asset Resource / High High Level Risk Scenario Selection / Internal Failure Ineffective design Ineffective design ◉Timing (non-critical) ◉ Inadequate support and services from Cloud Provider Cloud Provier as a strategic partner Performance of Cloud ◉ Duration (extended) ◉ Inadequate performance of Cloude Provider provider ◉ Detecion (slow) Cloud expertise and Internal Failure Ineffective design Process (manage IT human ◉Timing (unknown) ◉ Lack or mismatch of Cloud-related skills ◉Attracting the appropriate staff increases skills resources) ◉ Duration (extended) service delivery ◉ Detecion (instant) ◉ Correct staff and skill mix will support project delivery and value delivery Contractual ◉ External Failure ◉ Ineffective execution ◉ Process (ensure ◉Timing (non-critical) ◉ Contractual obligations with customers not met Compliance compliance to external ◉ Duration (extended) requirements) ◉ Detecion (slow) Logical Tresassing ◉ Internal Malicious ◉ Ineffective design ◉ Process (ensure systems ◉Timing (non-critical) ◉Users circumventing logical acces rights ◉ External ◉ Inappropriate use security) ◉ Duration (extended) ◉ Users obtaining access to unauthorised information ◉ Disclosure ◉ Enterprise architecture ◉ Detecion (slow) ◉ Users stealing sensitive data (information) Data protection risks ◉ Internal Disclosure Personal sensitive data ◉ Process (ensure systems ◉Timing (non-critical) ◉Users circumventing logical acces rights ◉ External security) ◉ Duration (extended) ◉ Users obtaining access to unauthorised information ◉ Enterprise architecture ◉ Detecion (slow) ◉ Users stealing sensitive data (information) Negative Example Scenarios Positive Example Scenarios Time Actor Event Threat Type Threat Asset Resource / Asset High Level Risk ScenarioRisk Level High Selection / Internal Failure Ineffective design Ineffective design ◉Timing (non-critical) ◉ Inadequate support and services from Cloud Cloud Provier as a strategic partner Performance of ◉ Duration (extended) Provider ◉ Detecion (slow) ◉ Inadequate performance of Cloude Provider Cloud provider Manage risk Confidential. For internal use only. Manage Risk Implement controls • Objective: • Generic Scenarios: • Cloud environment risk example • Provide guidance • Control Title scenario: on how CobiT • Control Description • Generic scenario: Cloud provider Selection control objectives and management • Control Title: Supplier Selection practices can help • CobiT Control Objective: Select Cloud in risk mitigation provider according to a fair and formal activities. practice Generic Scenario Control Title CobiT Control Objective Cloud provider Selection Supplier Selection Select Cloud provider according to a fair and formal practice to ensur a viable best fit based on specified requirements. Requirements should be optimised with input from potential suppliers Supplier Relation Formalise the relationship management processs for each Cloud provider. Ensure the quality of the Management relationship based on trust and transparency (eg through SLA's) Contractual Compliance Supplier Contract Set up a proceudre for establishing, modifyng and terminating contracts for Cloud provders. Include Management minimum, legal, financial, etc responsibilities and liabilities IT expertise and skills Personnel recruitment and Maintain it personnel recruitment processes to ensure that the organsation has an adequate Cloud retention expertise Personnel Training Provide employees with on-going training to maintain their Cloud knowledge and skills. Logical Tresassing Security Testing, Test and monitor the IT security to ensure that the information security baseline is maintained. A logging Surveillance and monitoring and monitoring function will enable early prevention and / or detectionof unusual activities Data protection risks Security Requirements for Define and implement policies and procedures to identify and apply security requirements appicable to the Data Management receipt, processing, storage and output of data Generic Scenario Control Title CobiT Control Objective Cloud provider Supplier Selection Select Cloud provider according to a fair and formal practice to ensur a viable best fit based Selection on specified requirements. Requirements should be optimised with input from potential suppliers Supplier Relation Formalise the relationship management processs for each Cloud provider. Ensure the Management quality of the relationship based on trust and transparency (eg through SLA's) Conclusion • Risk IT is a a powerful tool that can help manage all aspects of Cloud environment • Provides all the tools you need to manage wrapped into a practical and comprehensive framework. • Has a strong business focus that enables the Board, Management, Regulators, Service Providers, IT Departments and Users to speak a common language. .
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