Congress Gets CISA Passed in Omnibus Spending Bill

by Joe Clark 27. January 2016 10:04
Employing an age-old trick, Congress managed to receive passage of their Cybersecurity Information Sharing Act, or CISA into the omnibus spending bill that President Obama recently signed into law. The CISA is a contentious bill, with vocal proponents and opponents. It incentivizes companies and corporations to share data classified as a “cyber threat” with the federal government as a means of security. The thinking behind the bill is that corporations will share information they receive about cyber threats with one another and the federal government. With this shared information, entities will be better prepared against future cyber attacks and able to mitigate the current cyber threat landscape. Proponents argue that this type of bill will hinder future cyber attacks from those who were able to achieve relative anonymity in the past and offer the government a better means of mitigating cyber threats. Opponents feel that the government’s definition of cyber threat is too broad and this bill is a mandated violation of expected personal privacy and more a means of government surveillance. Had the President not signed the omnibus into law, there would likely have been a government shutdown. Though the Senate had not passed the bill, Congress placed it into the omnibus spending bill knowing it would likely get through.
Categories:

Seeking Cyber Resiliency in 2016

by Ken Urish 8. December 2015 11:40
In the evolving cyber risk management environment, cyber security is becoming an increasing priority for CFO’s, risk managers and financial executives. This is evidenced by the projected increased emphasis on cyber security for 2016 disclosed by two recent surveys. Consulting firm Protiviti surveyed 650 CFOs and found that, while margins and earnings performance top the list of priorities for 2016, cyber security risks are the next highest priority. TD Ameritrade surveyed 300 senior finance executives and found that 41% of respondents identified data security as an area for increased capital expenditures for 2016. With this increased emphasis, CFO’s are reacting to increased sophistication and frequency of cyber attacks, and a better understanding of the inherent financial risks. The true cost of a cyber breach is complex. A breach of intellectual property affects not just competitiveness, it also hurts market share due to reputational damage and loss of confidence by customers. Productivity suffers during the remediation process and the throughout the internal changes – system upgrades, procedural changes, etc. - that tend to be implemented following a breach. Then there is litigation expense, and in many industries, fines and fees from regulatory non-compliance. Along with growing awareness of the true cost of a breach is the acknowledgement by many risk managers that it is "not if, but when" a breach will occur. Therefore, the focus of the increased expenditures is not just for defense, but rather on preparing for efficient breach response and containment. Investments are increasing in cyber insurance, forensic tools, and for training staff in both protection and response techniques. In short, we are seeing a shift by CFOs and risk managers to a more proactive approach to cyber risk management. The goal - a cyber resilient organization.
Categories:

The Rising Tide in Risk Management

by Mark Gibbons 30. October 2015 15:59
Based on the results of a survey conducted in September 2015[1] with 150 directors of public company boards, it seems that directors are finally starting to understand their critical role in addressing cyber security. Indeed, cyber attacks are becoming more and more frequent, often targeting high-profile companies and their sensitive data and information. As the attacks become more widespread and damaging, the involvement of the corporate board in mitigating cyber risk has become an imperative. Of the 150 corporate board directors surveyed, 22% reported having experienced a cyber breach within the past two years, which has doubled since 2013 (11%). While those numbers are alarming, the good news is that 69% of corporate directors reported their board being more involved with cyber security than it was in the previous 12 months. Additionally, more than 70% of board members report having increased their company’s investments in cyber security within the last 12 months. 28% have purchased cyber insurance. Though the tide seems to be turning, the survey results indicate that there are many corporate boards and directors that haven’t yet taken key steps to mitigate cyber risk and protect their digital assets. Only 34% of directors reported having conducted a formal assessment of their critical digital assets, while 32% have had an assessment, but have no final strategy in place based on those assessments. Furthermore, although third-party vendors are a critical source of cyber attacks, only 35% of directors have developed cyber risk requirements for their third-party vendors. Has your board performed a risk assessment of its critical assets? Do you have a plan in place to mitigate cyber attacks? Don’t be the 21% without a plan in place.   To view the results of the survey, conducted by our Alliance partner BDO, click here. [1] Survey conducted by Market Measurement on behalf of Urish Popeck’s alliance partner BDO.
Categories: Risk Management