how to make your enterprise cyber resilient

How to make your enterprise cyber resilient

Copyright © 2015 Accenture All rights reserved. 2Copyright © 2015 Accenture All rights reserved. 2For more information, please visit: www.accenture.com/riskstudy2015

According to respondents from the 2015 Global Risk Research Study Cyber Risks are set to rise and are high priority on the CRO agenda

74%of insurance respondents expect cyber and IT risks to become more severe

65% of Banking respondents expect cyber risk to become more severe

58%of capital markets respondents expect an increase in the severity of cyber risks

Cyber & IT Security Risk in Financial Services

Copyright © 2015 Accenture All rights reserved. 3

What is Cyber Risk?

Cyber Risk

Reputational Risk• Loss of Trust (internal and external)• Brand Damage / Loss of Intangible Value• Time intensive / costly to repair• Need to embrace Digital

Technology and Operational Risk• Failure of infrastructure, processes or systems• Inability to operate/Run the business• Requires regular planning and oversight• Importance of effective and current controls

Fraud and Financial Crime• Lost revenue and profit – high cost• High velocity and high frequency/relentless• Need to stay close to regulatory agenda • Requires both business and technology solutions

Sourcesof Cyber Risk• Hacktivism• Hacker / Lone Wolf• Nation State Attacks• Insider Data Leakage• Social Engineering

Internal Originsof Cyber Risk• Digital Banking Services• Payments • Electronic Trading• Third Parties• Technology Infrastructure

Cyber Risk can manifest itself across several dimensions, makingit difficult to detect, measure, and control


Protecting Against the Cyber Threat is not a New Problem

• Linear or horizontal approach is not working

• Large Institutions lack the facts and processes

• Challenge to understand what information needs tobe protected and the most effective set of defense mechanisms

• Companies that spend more on cyber resiliency do not necessarily manage cyber resilience risk in a more mature way

Cyber resilience is a continual challenge due to the exponential rate at which people, processes and organization are connected digitally

Historical Methods

• It’s not possible to isolatethe risk

• Cyber risk does not respect your organizational structure

• It’s not just a technology problem, but rathera technology, process and people problem

• Firm that invest in and develop cyber capabilities to instill trust will have an competitive edge in the digital era

New Paradigm


Resilience

• Downtime/Loss of service• Theft/Fraud• Loss of data• Impact to reputation/brand

The ability to operate the business processes in normal and adverse scenarios without adverse outcomes

• Secure processes and systems• Strong controls• A strong risk culture• Digitized/Automated processes

Resilient businesses have: Resilience Prevents:


A Comprehensive Approach helps Protect the Full Breadth of Entry Points and Operations which Underpin Financial Services Organizations

Detect

IdentifyRespond

Prevent

Detection and Identification – Tools and metrics to identify and log aspects to manage operations

Operational Monitoring – Aligning the tools to identify and detect threats along with their escalation and oversight

Event Response Plan – Structureto identify and manage action plans

Business and IT Controls – Oversight of the controls and their testing programs and how to leverage COBIT®, ISA, ISO/IEC, NIST* controls

Operating Model – Specifying the structure with people, organization, roles, tools and processes to govern.

Crisis Management – Structure to manage incidents and notify impacted parties

Risk Events - Scenarioswhich can impact the organization specific to Cyber threats

Risk Identification – Aggregated set of typical risk associated with Cyber Risk

How do we respond?

What is the impact?

How do we organize?

How do we monitor?


Measurement with a PurposeObservations and Hypotheses

• Customers• Employees• Partner/Third

Parties

• Business Process

• Support Process

• Other Process

• Software• Configuration

s• Access

Management

1. Without the right metrics, Cyber Risk could become diluted and mis-aligned to business value

2. Historical key performance indicators (KPIs) may not provide insights

3. Board-level reporting has no clear standards and could be out of sync with the real threats

4. Techniques to model the scenarios, risk events and residual risk across the firm are not focused on cyber threats

Process Technology

People


Measurement with a PurposeCommon categories to consider for Cyber Risk Reporting

1. Board-Level Reporting 2. IT Risks 3. Operational 4. Advanced

Analytics

Infrastructure

Third Parties

SoftwareInternal

Employee Training

Data Loss Prevention

Employee Monitoring

External

Vulnerabilities

Surveillance

Funding

Risk/Reward Decisions IT Operations

Fraud

Target Residual Risk

Access Management Physical Security High Crimes and

Investigation

New Focus Renewed focus


Embed the first line of defense within technology organization. Create a centralized office with technology control officers across business lines which just focus upon IT.

Cyber Risk Operating Models An operating model helps define the organization’s accountability for doing the work, supporting the right decisions and measure effectiveness

Centralize an entire department as 2nd line of defense with examinations across the lines of business. Build highly specialized team and track similar to compliance function.

Policy setting organization and influencer similar to data and privacy. Develop risk frameworks around IT, Data integrity, and operations and run as 2nd line of defense.

Create an enterprise-wide risk function dedicated to identify, measure and respond to threats.

Option 1 – Dedicated Function

Option 0 – IT Centric

Option 2 – Cyber Czar

Option 3 – Risk Led


Operating Model Analysis Each option should consider the tradeoffs with the firm’s ability to Prevent and Detect Threats

Effi

cien

cy

Ability to Prevent and Detect Threats Low

High

High








High

High

Valu

e to

Cus

tom

er








High

High

Spe

ed to

Exe

cute






1. Training and Risk Culture – Taking your unique organization and infusing the right cyber risk behaviors

2. Controls – Where are the weak points – build robust set of controls across operations, business and IT

3. Measurement with a Purpose – What is going on without you knowing it – creating metrics which help expose the risks

4. Operating Model – How do you work with the rest of the organization - assigning clear lines of accountability and ownership

5. Resilience – At some point it will go wrong, how do you get the best outcome from the worst situation?

The Top 5 Priorities to Get Right Cyber Risk does not fit neatly into a single organization node to then be managed and mitigated effectively


A risk-based approach helps to set priorities, establish a risk appetite (and a budget) and bring order and priority in place of reaction

Holistic Capabilities to help Deliver Resilient Solutions

More institutions are focusing on a better way to address the challenges of cyber risk, but few have mastered it

Establish effective controls for people, process and technology to facilitate effective surveillance and improved incident response to deliver resilient solutions

GlossaryCOBIT: Control Objectives for Information and Related Technology. COBIT® is a trademark of ISACA® registered in the United States and other countries.

ISA: Information Society of Automation

ISO: International Organization for Standardization

IEC: International Electrotechnical Commission

NIST: National Institute of Standards and Technology

How to Make your Enterprise Cyber ResilientDisclaimer: This presentation is intended for general informational purposes only and does not take into account the reader’s specific circumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals.

About AccentureAccenture is a global management consulting, technology services and outsourcing company, with more than 358,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$31.0 billion for the fiscal year ended Aug. 31, 2015. Its home page is www.accenture.com.

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Learn more about cyber risk and resilience:www.accenture.com/CyberRisk

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