Wednesday, July 13, 2016

How to make your company secure in today’s digital age

How to make your company secure in today’s digital age

CXOs agree building a strong security set-up is challenging, but it’s crucial if firms want to profit from digitization

Mumbai: Digitisation is rapidly changing business models, but as the world gets more and more digital, it is being exposed to graver security threats as devices get increasingly connected. In this context, senior executives (CXOs) across sectors such as banking, financial services and insurance (BFSI) and manufacturing participated in a round-table conference in Mumbai on 27 May organised by Cisco in association with Mint to discuss ‘Enterprise security in a digital age’. The group was unanimous that building a strong security architecture is challenging, but crucial if companies want to reap the benefits of the digital era. Here are edited excerpts from the two keynotes and round-table discussion:

Be prepared, security threats will only rise: IDC

With businesses continuously being pushed to digitize faster, building a strong security ecosystem is crucial to accelerating the pace of digital transformation and overall growth of the individual companies, according to Jaideep Mehta, managing director for India and South Asia region at research and advisory firm International Data Corporation (IDC).
Mehta said that security is the digital accelerator and an enabler rather than something holding back digital transformation.

“Security is not just about risk mitigation. As the boundaries of an organization expand—whether through mobile devices or through partners and distributors—security plays very much an enabling role other than something which is holding you back,” he added.

With robots replacing human workers, and 3D printing and artificial intelligence starting to revolutionise the manufacturing sector, technology leaders should be cautious of the risks these technologies are opening up, Mehta said. Systematic hassles will emerge down the line, and equally, risks are being created which will be challenging to manage, he added.

“There used to be a time when cyber-attacks were a big fat virus running across all over the world. Those used to appear in newspapers and all the rest of it. Now what is happening increasingly is a much more targeted approach,” Mehta said.

He pointed out that to counter modern-day and future threats, firms need to start thinking in a more holistic manner, apply analytics in detecting the vulnerabilities of the system and understand the pattern of attacks.

A significant percentage of stolen data has actually ended up with employees of the organization, most of which are being poorly monitored, cautioned Mehta. Companies should be making aggressive investments in monitoring outbound traffic and catching anomalies, he said.

“Hackers and the bad guys are getting better and better in spotting the one weak link in the chain and attacking right there. You would have the best of technology in the world but if your CEO’s password is 123—Best of luck. Unfortunately, that is still the most common password in the world.

“I will stick out my neck and say that all organisations at some point will get hacked at some point or the other and when you do that procedures, technologies, resources you have put in place should be able to respond to that intelligently and minimize the damage. What kind of risk management are you putting in place there? It is an opportunity for most organisations to improve themselves,” Mehta said.

Security architecture needs long-term perspective: Cisco

Companies need to take strategic steps and put safety mechanisms in place in a holistic manner to counter the growing number of cyber security threats that are getting more advanced and sophisticated, according to Pravin Srinivasan, lead, security sales at Cisco India and SAARC, or South Asian Association for Regional Cooperation.
“The flip side of digitization is that it opens up to a lot more security threat... Once you try fixing one problem, something else opens it up. It seems fairly obvious that we should open up our organizations and allow mobile device access. But the fact of the matter is you have to take a lot of steps before doing that because security threat is a growing concern,” Srinivasan said.

How can one use security as a business enabler?

According to Srinivasan, understanding the behavioural base is the only way to look at security threats. “What is it doing which it is not supposed to do; where is it coming from; is it coming from source that is not trusted? Has it gone to another place that’s not trusted? That’s the kind of information that one needs and that is visibility”.

Srinivasan said that safety mechanisms and systems should be as broad-based as possible and should be threat-focused, failing which a lot of risks will be posed by data branches as well as remote offices. “Traditionally, the approach is, I’m moving to the next generation firewall. So I’m going to put a next generation firewall at my perimeter and that will give me a lot of visibility. But is that sufficient? Probably not,” he said.

Srinivasan insisted on the importance of having an architecture and long-term security strategy in place to counter threats. “A security architecture means a couple of things. One is it’s long term—3-5 years’ perspective. There is a definite road map about what needs to be done. Where are the gaps today and where you need to go. You have to have an architecture for collaborations and applications you are going to build,” he said.

Lastly, he said organisations should look at outsourcing the security services to a third party which has the expertise in the field, as there is a limit to what in-house professionals can do to protect systems.

“We have to look how best we can do to get the best of resources outside the organization. Because threats keep changing every day. So it’s impossible for an in-house organization to keep tracking all the threats. When you have organisations outside who are looking at it globally, obviously they are having a much deeper focus and people who are able to look at different angles,” he said.

“Sometimes there is paralysis because of too much of analysis. The point is we need to start somewhere. Finding that one person to do everything is a fairly utopian idea. In security, we need to realise there is a limit to what one can do. Start somewhere, start small and realise where to outsource and whom to outsource to,” Srinivasan said.

What BFSI executives say

"There are two types of organizations. Those that know they are being hacked and those that do not know... no matter how thick we have already set the wall, you cannot conquer this field of security. It is important for all organisations to build a strong cybersecurity response team with necessary tools and a strong skill set. Secondly, you need a platform specially in a large organization such as financial services where you can correlate that information and data that we collect on a daily basis."- Munish Mittal, chief information officer, HDFC Bank Ltd

"We are out there putting our solutions and applications, but customers are their own enemies today. We have tried very hard by putting out ads and spreading awareness about phishing but we keep reading articles about customers giving away PIN numbers. The other harder part is that we love to download everything that says it’s free; what ends up happening is that people are putting a lot of malware in their phones. On the corporate side, we face challenges because specially in the middle and smaller markets, awareness about some of the risks is limited; we have seen a number of cases where either email accounts of customers have been hacked, or a similar sounding email has been sent to customers, changing supplier bank account detail, and inadvertently customers sent money to incorrect bank accounts."- Vikram Subrahmanyam, managing director, Citicorp Services IndiaLtd, and head of operations and technology, Citi South Asia

"We speak about preventions and we speak about tools, etc. But what is more worrying is that we don’t get the right resources to tell us whether there is an attack in the organisation or even afterwards. We, too, have a hard time finding an Indian partner to help us in building encryption within our required areas."- G.Shenoy,chief technology officer, NSE

"While we are aware about security threats to our systems, we are still not there in terms of how we are trying to mitigate these threats. Right now what we are doing is more reactive. Nobody has looked at building a security architecture in a holistic manner. We have to look at the architecture and figure out what we have and whether we have covered everything or the things to watch out for?"- Anup Purohit, chief information officer, Yes Bank Ltd

"I think there has to be a way IOCs (indicators of compromise) can be shared among various organisations. Locally, everybody sees some specific indicators of compromise at the end point or at the network areas; we need to share that information locally within the country. Right now, most of the IOCs that are being shared are detected from countries such as the US or UK. There is a tussle between machine learning and the talent which is available to consume the kind information which is coming in. We are defaulting at finding the real talent that can analyse the information."- Ashutosh Jain, chief information security officer, Axis Bank Ltd

"Losses, due to cyber theft, turn into millions of dollars. Insurance is the back stop and it is probably the most efficient form of capital that I have seen. To buy a million worth of insurance which is contingent capital, it can be triggered or called upon under certain situations. The average cost would be about $4,000-5,000. This is half a percentage of cost of capital (which is about 6-10%) if companies were to keep that risk on their own balance sheets."- Anup Dhingra, practice leader, financial and professional lines, Marsh

What executives in manufacturing sector say

"Pharmaceutical is one of the heavily-regulated industries around. So the kind of impact that loss of data could have is different from what other industries and sectors could have. We are a heavy research and intellectual property (IP)-based industry. We spend about 12% of revenue on research and development. As an industry, we have been acquiring a lot of companies and expectation is to get integrated from day one. And most of the companies that we acquire come with their own legacy infrastructure and legacy security set-ups. We want them integrated from a business perspective and do integrate them from an IT perspective standpoint but we are still leaving significant holes all around the world and these are vulnerabilities that get exploited."- Mayur Danait, chief information officer, Lupin Ltd

"There is a growing awareness, but the point is to think about it in a holistic way when approaching security. One big challenge is that vendors and service providers have their own solutions—these are never holistic. Even the managed service providers talk in bits and pieces. So the challenge is to first conceptualize what we want and then have an offering around it."- Pankaj Bhargava, chief information officer, Pidilite Industries

Other sectors

"It is good to have a platform approach theoretically, but every time I feel that I have got a homogenous environment, our organization goes for another new acquisition. I have to go back and re-create all the work and make sure that it is homogenous again. It is easy to talk about a platform-based solution, but it is complex... the reality is it takes time, to figure out what you’re really looking for."- Gaurav kataria,chief information officer, Cyient Ltd

"I don’t think there is dearth of funds but again the nature of spending is always becoming reactive. Two years back when I joined my company, we saw about 60 attacks a day. The biggest (DDOS—distributed denial of service) attack what we had in India is about 40 gigabytes (GB) and last week we had an attack about 90-100 GB. So it’s ramping up phenomenally."- Vishak Raman, associate vice president/global product management, MSS and CDN, Tata Communications

"People need to pay attention to smaller things than the big ones... it’s the little gaps which the hacker is waiting to exploit... that’s where investment is needed."- Sunil Mehta, senior vice president and area systems director, Central Asia, JWT

Source | Mint – The Wall Street Journal | 12 July 2016

Regards

Pralhad Jadhav
Senior Manager @ Library
Khaitan & Co


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