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Resilience in
                                 the Cyber Era
                                 Building an Infrastructure
                                 that Secures and Protects




An Economist Intelligence Unit
research program sponsored by
Booz Allen Hamilton
List of Interviewees                           About the Survey
Karen evans National Director,                 In June and July 2011, the Economist Intelligence
U.S. Cyber Challenge                           Unit conducted a global survey, sponsored
nigel inKster Director of Transnational
                                               by Booz Allen Hamilton, of 387 executives to
Threats and Political Risk, International      assess attitudes toward cybersecurity, and
Institute for Strategic Studies                their progress towards implementing resilience
                                               strategies. Nearly one-half (48 percent) of survey
linDa laUn Global Business Continuity
                                               respondents are board members or C-level
and Resiliency Services Consulting Portfolio
                                               executives, including 92 CEOs. The respondents
and Methods Manager, IBM
                                               are based in Asia-Pacific (29 percent), North
len PaDilla Senior Director                    America (26 percent), Western Europe
of Technology, NTT Europe                      (26 percent), Latin America (9 percent), Middle
ernie raKaczKy Principal Security              East and Africa (7 percent) and Eastern Europe
Architect, Invensys                            (3 percent). More than one-half of the survey
                                               respondents (55 percent) work for companies
Dave scott Head of Solution
                                               with global annual revenues exceeding
Consulting, NTT Europe
                                               US$500 million. Nineteen different industries
Michael shinn CEO, Prometheus Global           are represented in the survey sample, including
garry siDaway Director of Security             financial services (20 percent), professional
Strategy, Integralis                           services (14 percent), energy and natural
                                               resources (12 percent), IT and technology
JaMes P. g. sterbenz Associate Professor,
                                               (10 percent), and manufacturing (8 percent).
Department of Electrical Engineering and
Computer Science, Communications and
Networking Systems Laboratory, University
of Kansas
Contents

Executive Summary .................................................................................................................. 2

Introduction ................................................................................................................................ 3

Resilience: Definitions Matter ............................................................................................... 5

The Proliferating Threat........................................................................................................... 6

The Corporate Response ........................................................................................................ 7

The Government Response ................................................................................................... 9

Sidebar: The Role of Private Public Partnerships..........................................................10

Critical infrastructure issues: Developing Better System Architectures ..............10

Application issues: Resilience Through Better Software ...........................................11

Access issues: Greater Availability by Focusing on Data ...........................................12

Workforce issues: Becoming Resilience Aware .............................................................13

Sidebar: The Industry Differences .....................................................................................15

Conclusion .................................................................................................................................16

About Booz Allen ....................................................................................................................17

About Economist Intelligence Unit ...................................................................................17




                                                                                                                                      Resilience in the Cyber Era 1
Executive Summary
                 •   the cyber threat has evolveD froM hacKers fUnc tioning as hobbyists
                     to soMething More serioUs anD organizeD. Today’s malicious agents are
                     members of a growing industry of companies designed to infiltrate data centers to
                     capture private information.
                 •   resilience can be DefineD as the ability of a system or domain to withstand attacks or
                     failures, and to reestablish itself quickly. But other definitions of resilience vary widely.
                 •   the new attitUDe towarD resilience accePts that coMPanies cannot achieve
                     Perfect secUrity or absolUte continUity. Businesses are moving away from the
                     “bunker mentality” that encouraged them to retreat behind so-called “hardened endpoints.”
                     Instead of aiming for a security standard that is impossible to achieve, they should focus on
                     balancing resilience with productivity.

                 •   organizations can iMProve resilience by iMProving their critical Data centers
                     and by making access to their systems more secure. Virtualization strategies and off-premise
                     cloud architectures enable these data centers to be more secure than ever. Resilience should
                     be about making data continuously available to those who should have access to it, and
                     invisible to those who do not.

                 •   a trUly resilient enterPrise DynaMically innovates anD changes its
                     Practices, Policies, anD Processes, in response to changing threats from the outside
                     and changing requirements from the inside. Organizations must accept that data are
                     protected by people, not machines. To improve resilience, they must enable and educate
                     their workforce. • •



                 Worldwide Internet Penetration




                           70 % 94 %
                                of hoUseholDs                                    of bUsinesses with
                                  are online                                    10 or More eMPloyees
                                                                                      are online




2 Resilience in the Cyber Era
Introduction

the internet has PenetrateD almost every corner of human activity. Among members of the
Organization for Economic Co-operation and Development (OECD), 70 percent of households and
94 percent of businesses with 10 or more employees are online. Worldwide, the number of Internet
users is projected to rise from 6.4 per 100 inhabitants in 2000 to 29.7 per 100 by 2010.


F IguRE 1 Ever-rising Internet penetration


                          30       Global ICT Developments, 2000-2010

                          25
    Per 100 inhabitants




                          20


                          15


                          10


                          5


                               0   2000     2001    2002   2003     2004    2005     2006     2007   2008   2009   2010

                                   Internet users     Fixed (wired) broadband subscriptions


Source: ITU World Telecommunication/ICT Indicators database



But as the world‘s digital market expands, so do                                 One-third (32 percent) of executives say their
the threats to its security. The estimated median                                country‘s economy relies on cyber infrastructure to
cost of cyber crime for an organization—including                                an overwhelming extent. A further 54 percent say
loss of property, loss of productivity, and cost                                 cyber infrastructure is at least of equal importance
to remediate—rose from US$3.8 million in 2010                                    to their country‘s growth as other factors. When
to US$5.9 million in 2011, according to Ponemon                                  executives were asked the same question
Institute’s Second Annual Cost of Cyber Crime                                    with respect to the economic growth of their
Study (2011). The number of cyber attacks has also                               organizations, 41 percent of respondents consider
increased by 44 percent per year, to an average of                               cyber infrastructure more important to their
1.4 successful attacks per week, per organization.                               organization‘s growth than other factors, and
                                                                                 48 percent consider it of equal importance.
A survey conducted for this research program
has confirmed the Internet‘s benefits and its risks.


                                                                                                       Resilience in the Cyber Era 3
F IguRE 2 To what extent does the economic performance of your organization
                         and the country where you are located rely on cyber infrastructure?




                           Your Company                                                                                                                     100%

                                                  41%                                        48%                                                 10%   1%


                             Your Country                                                                                                                   100%

                                                  32%                              54%                                                     11%         3%

                                                       To an overwhelming extent (cyber infrastructure is more important to growth than other factors)
                                                       To some extent (cyber infrastructure is of equal importance to growth as other factors)
                                                       To a small extent (cyber infrastructure is less important to growth than other factors)
                                                       Don’t know




                         Source: Economist Intelligence Unit survey, July 2011




                         While the threats to cybersecurity for the world‘s                          resilient enterprise dynamically innovates and
                         businesses remain serious—and evolving,                                     changes its practices, policies, and processes,
                         businesses are moving away from the “bunker                                 in response to changing threats from the outside
                         mentality” that encouraged them to retreat                                  and changing requirements from the inside.
                         behind so-called “hardened endpoints”. Web-                                 Educating its workforce about the nature and
                         based applications, mobile devices, and cloud                               function of these changes is one of the key paths
                         infrastructures are changing the business and                               to greater resiliency.
                         technology landscape simultaneously. A truly



                                                “The number of cyber attacks has also increased by
                                                44 percent per year, to an average of 1.4 successful
                                                       attacks per week, per organization.”




4 Resilience in the Cyber Era
Resilience: Definitions Matter

nigel inKster, Director of Transnational Threats          Resilience means something entirely different
and Political Risk at the International Institute for     to companies that are closely integrated into
Strategic Studies, offers a scientific definition of      a nation’s critical infrastructure—be it the
cyber resilience: “the ability of a system or domain      stock market, electric rail networks, or nuclear
to withstand attacks or failures, and in such events,     power stations. “We talk to our customers about
to reestablish itself quickly.”                           what we call continuous service delivery,” says
                                                          Garry Sidaway, Director of Security Strategy for
But other definitions of resilience vary widely. In
                                                          Integralis, a global security consulting firm. “Whilst
2010, the US Department of Homeland Security
                                                          components might fail or you might have an
commissioned a study on how institutions were
                                                          incident, it’s about ensuring that service is still
implementing resilience principles. Its analysts
                                                          being delivered and the integrity of that service
came up with 119 different definitions, and
                                                          is still there.”
concluded that a broader, more cohesive
definition of resilience should include                   The new attitude in achieving resilience is to plan
flexibility and adaptability.                             for acceptable levels of data loss, unit failures, and
                                                          compromise. This may seem alien to executives
Professor James P. G. Sterbenz, from the
                                                          who have historically maintained a “zero-tolerance”
Communications and Networking Systems
                                                          policy toward failures. But new cloud hardware
Laboratory at Kansas University, has been
                                                          architectures are demonstrating that everyday
working on clarifying the concept of resilience for
                                                          events like storage device failures and data loss
governments and organizations. The principles he
                                                          can be tolerated when redundancies are built
and his colleagues have developed as part of the
                                                          into the system.
university’s ResiliNets data network architecture
project have been adopted by the European                 The US Department of Homeland Security
Union’s government security agency, ENISA, and            concluded in recent studies that “zero-tolerance”
are in the process of becoming adopted by the             policies led to the perception that every unit of the
US Department of Homeland Security.                       business, whether digital or human, was critically
                                                          important. When everything is critical, nothing is
Professor Sterbenz points out that notions of
                                                          critical. When organizations enact more flexible
resilience can include several concepts that mean
                                                          tolerance principles, failures that would have shut
different things to different people. “Reliability
                                                          down processes or even entire networks in an
and availability are very different,” he explains. “A
                                                          earlier era, won‘t even be noticed by customers.
reliable system is one that operates for a specified
period of time, and you say what the probability
is. Availability, on the other hand, is the probability
that something will be there when you need it.”




                                                                                 Resilience in the Cyber Era 5
The Proliferating Threat

                         the cyber threat has evolveD from hackers                              leading up to these reports than in the preceding
                         functioning as hobbyists to something more                             18 years combined.
                         serious and organized. Today‘s malicious agents
                                                                                                “From a risk management point of view, there’s
                         are members of a growing industry of companies
                                                                                                a whole new set of variables that have to be
                         designed to infiltrate data centers to capture
                                                                                                considered,” says Mike Shinn, CEO of US-based
                         private information. Their primary strategy is to
                                                                                                Prometheus Global, a security consulting firm
                         induce unsuspecting users to install malware on
                                                                                                whose clients have included the White House and
                         their PCs. Once installed, the malware converts
                                                                                                US Department of Defense (DoD). “There’s a fairly
                         the PCs into inadvertent attackers of the agents‘
                                                                                                widespread increase in economically directed
                         final targets—data centers at Amazon, Rackspace,
                                                                                                criminal activity [for] the theft of intellectual
                         and elsewhere. In the summer of 2011, a number
                                                                                                property. Cyber criminals are now targeting
                         of security providers, including UK-based security
                                                                                                everything from client lists, internal strategy
                         services provider Webroot and other members of
                                                                                                documents, designs—everything up to and
                         the Cloud Security Alliance, produced reports on
                                                                                                including information held by governments that
                         these malware attacks. More instances of malware-
                                                                                                would be of economic value.”
                         based attacks were reported in the 18 months



                         F Igu RE 3 What type(s) of cyber incident(s) has your organization experienced in the past
                         year? Select all that apply.

                                                                                    Phishing                                         46%

                                                                                    Malware                                         45%

                                                    Denial of service attack against website                   19%

                                                                        External data breach                  17%

                                                                        Internal data breach                  17%

                                                                            Cyber espionage          10%

                                                                        Other, please specify   2%

                                We did not experience any cyber incident in the past year                  16%

                                                                                 Don’t know             13%




                         Source: Economist Intelligence Unit survey, July 2011




6 Resilience in the Cyber Era
The Corporate Response

the initial corPorate resPonses to cyber                Linda Laun, Global Consulting Portfolio and
attacks have failed to address deficiencies in          Methods Manager for IBM’s Business Continuity
network architectures that allow the latest cyber       and Resiliency Services team, notes that
attacks to occur. Ernie Rakaczky, Principal Security    companies tend to focus on event-driven issues,
Architect with Invensys’ process automation group,      things that are huge in scope—such as natural
believes that companies‘ efforts throughout             disasters, pandemics, power failures, and civil
the last decade have led businesses to adopt a          unrest—as triggers for invoking security measures.
“fortress mentality” to protect their infrastructure.   Laun believes that most companies know how to
Although setting up firewalls and zones, policies,      approach risks associated with security and data
and procedures makes sense, they should not be          issues such as data loss or corruption, viruses,
done in a “reactionary mode,” Rakaczky says.            and worms, but she says they still struggle when
                                                        dealing with risks associated with business issues
The survey paints a mixed picture of the current
                                                        like governance, compliance, audits, scalability,
state of corporate cybersecurity strategies.
                                                        and performance.
Some 53% of our survey respondents say their
organization has a cybersecurity strategy already       Laun believes the problem is that responsibilities
in place. Thirty-three percent of respondents admit     for these other security issues are confined within
they have no cyber-resilience strategy in place,        organizational silos. IBM advocates what it calls
and 14 percent were unsure. When asked to check         a Business Resiliency Management Framework
three of the biggest barriers to their companies        (BRF) to distribute responsibility across multiple
developing cybersecurity initiatives, among a list      business units. The goal is to establish a centralized
of nine, 41 percent of respondents cite lack of         governance structure that allows stakeholders
knowledge of the threat as holding back                 within the silos to set the direction of the program
their companies.                                        together through policy, measure success, and
                                                        then “enforce” its policies.


                                                                              Resilience in the Cyber Era 7
41%
    When asked to
 check three of the
 biggest barriers to
   their companies
        developing
                                 saiD lacK of KnowleDge
     cybersecurity              of the threat was holDing
                                   bacK their coMPanies
          initiatives



                         The new attitude toward resilience accepts that         be more productive no matter where they are or
                         companies cannot achieve perfect security or            what devices they are using. “Whether it’s working
                         absolute continuity. Instead of aiming for a security   regular hours or out-of-hours, whether it’s on a
                         standard that is impossible to achieve, they should     personal device or business device, how do we
                         focus on balancing resilience with productivity. “It    enable them to work and be productive in their
                         is all about enablement,” proclaims Integralis’ Garry   jobs? That is the change in information security
                         Sidaway. Instead of being seen as forces that say       that we’ve got to drive towards, and we have a
                         “No,” he believes IT departments should ask how         great opportunity to do that.”
                         they can enable their company’s employees to



                         F IguRE 4 Does your organization have a cybersecurity strategy?


                                                                                 14% Don’t know




                                                            53% Yes



                                                                                          33% No




                         Source: Economist Intelligence Unit survey, July 2011




“Whether it’s working regular hours or out-of-hours, whether it’s on a
 personal device or business device, how do we enable them to work and
 be productive in their jobs? That is the change in information security that
 we’ve got to drive towards, and we have a great opportunity to do that.”




8 Resilience in the Cyber Era
The Government Response

all aroUnD the worlD, governments are                         think governments could encourage greater
expected to provide the leadership role for                   cooperation between public and private sectors;
cybersecurity and resilience—a topic they are                 and 56 percent think governments could promote
only just beginning to address. Executives believe            technology innovation through programs such as
their organizations and their governments                     cyber competitions.
could devote more resources to security issues.
                                                              Although 87 percent of respondents believe
Approximately 67 percent say their organization
                                                              improved understanding should come from
needs to pay more attention to cyber risks, and
                                                              a greater partnership between government
less than one-quarter (23 percent) think their
                                                              and private industry, a far lesser number
government is doing enough to promote cyber
                                                              (36 percent) believe government should actually
resilience. When asked whether they believed
                                                              take the leadership role in maintaining cyber
their country could do more to promote resilience,
                                                              security. In short, businesses want help, and they
57 percent of respondents said they think their
                                                              want it from government. But they do not want
governments could improve communication
                                                              government to take control of the issue.
and awareness of cybersecurity issues; 60 percent



F IguRE 5 In your opinion, who is primarily responsible for maintaining cybersecurity?



         National government(s)                                                                        36%


        Individual organization(s)                                                    27%


      Multilateral organization(s)                                              24%


                          Industry                      11%


             Other, please specify           1%


                       Don’t know            1%




Source: Economist Intelligence Unit survey, July 2011




                                                                                   Resilience in the Cyber Era 9
Critical Infrastructure
                                                                         Issues: Developing
                                                                         Better System
The Role of Public/                                                      Architectures
Private Partnerships
DesPite the MoDest sUccess of PUblic/Private                             the first way to iMProve resilience is to
PartnershiPs (PPP) to Date, executives see some value                    improve an organization‘s critical infrastructure—
in promoting collaboration. Eighty-seven percent of survey               its data center. Newer infrastructures enable
respondents agree that cyber resilience relies on some form of           these data centers to be more secure than ever,
partnership between government, civil society, and business.             primarily because fault tolerance, replication,
                                                                         and workload balancing are all built into newer
DARPA, the (DoD) agency tasked with technological innovation,
                                                                         operating systems and newer hardware. These
offers a successful example of how to stimulate private sector
                                                                         new structures are more effective than the
innovation for the greater good. The agency assembles teams
                                                                         “endpoint” hardening approach to system security,
of experts who pursue innovative ideas. Little money is lost if
                                                                         which focused on hardening security at PCs,
they are unsuccessful, while successful projects are picked up by
                                                                         smartphones, and other endpoint devices.
the private sector. One such case was ARPANET, the precursor to
today‘s Internet. Among more recent examples are the DARPA               Dave Scott, the head of NTT Europe‘s Solution
Grand Challenges, a cash prize competition last held in 2007             Consulting team admits that, although he
that stimulated the development of driverless vehicles.                  was once an advocate of that approach, the
More recently, the DoD rolled out the Defense Industrial Base            precautions he took weren‘t enough. “I may have
(DIB), a PPP initiative designed to share cyber threat information       been naïve until my first data center outage,” Scott
among organizations that support the US defense industry.                says, “at which point, I wised up quite quickly.
In August 2011, the trial was pronounced successful, and                 You can put together what you think are the best
the initiative is now being extended to include certain                  security endpoints and resilience within a single
critical infrastructures.                                                facility, and something will still happen that takes
                                                                         the whole thing out. You assume then that true
The U.S. Cyber Challenge offers yet another model of public/             resilience and true availability mean more than just
private partnership. Karen Evans, the organization‘s national            endpoint security.”
director, said she first got involved in the U.S. Cyber Challenge, “to
test the hypothesis that you could hold an online competition            To improve security at data centers, it is necessary
and identify talent.” The U.S. Cyber Challenge holds numerous            to address the three classes of operations they
competitions and events throughout the year and now also                 involve: processing (the execution of programs
hosts a summer camp program, which in 2011 received 1,000                and the production of data, often called
registrants for 200 available slots. Evans and her colleagues            “compute power” by service providers); storage
seek to harness the competitive nature of Americans and, in the          (the containment of data); and interconnect (the
process, identify highly talented individuals. The goal is to use the    transmission of data and functionality). In an
competition to eventually get 10,000 very skilled people to enter
the workforce, taking modern resilience principles with them. • •




10 Resilience in the Cyber Era
earlier era, the processor was a central processing      Organizations may use a hosted provider such
unit (CPU), the storage amounted to a couple of          as Rackspace for their servers, or a cloud service
hard disk drives, and interconnect was managed           provider (CSP) such as Rackspace, Amazon, GoGrid,
through Ethernet cables.                                 or BlueLock to host all or part of their data center
                                                         at various times. This allows them to lease more
Two new factors have changed the way data
                                                         compute power during peak usage times as well as
centers are managed. First, companies often
                                                         other efficiencies.
employ virtualization strategies to improve
compute power and storage in their data centers.         Len Padilla, Senior Director of Technology for
A vast array of storage devices—on- and off-             NTT Europe, believes that cloud architecture
premise and clusters of processors—are made to           allows more companies to build failure and fault
appear to the operating system as a single pool          tolerance into their data architecture. Companies
of storage and a single processing engine. These         now have new ways to make their systems
pools are then “connected” to the network by             geographically blind and ramp up resources
way of software that simulates a physical network        to address a load in a particular way. “That’s
adapter. The result is a virtual machine whose size      something that very big organizations with very
and location can be changed while it is still running.   big IT budgets have always been able to do, but
                                                         now cloud computing allows even smaller and
Companies may also move part or all of their
                                                         medium companies to do the same thing,”
infrastructure off-premise via the cloud.
                                                         explains Padilla.




Application Issues: Resilience
Through Better Software
another way to iMProve resilience                        be used across a firm with auditing and versioning
is through more modern applications. Newer               services are far more concrete and trustworthy.
software can be better managed than older                Similarly, many company employees send sensitive
software. However, too many organizations rely           documents as attachments to one another via
on work processes geared around old and even             e-mail and institute security measures for ensuring
outmoded applications. For example, law firms            encryption and validating receipts. A better
institute chains of custody around their document-       alternative is to create shared storage spaces where
handling processes that presume that documents           only permitted individuals may be made aware
are transferred from person to person. Newer             of a document‘s existence.
collaboration software that allows documents to


                                                                             Resilience in the Cyber Era 11
Invensys’ Rakaczky explains that he still works with   software before the end of a cycle, the cost often
                         customers who use software and methods that            gets counted as a budget overrun.
                         date back to the turn of the century. In some cases,
                                                                                Instead, Rakaczky tries to help his customers
                         he has had to employ virtualization just to enable
                                                                                keep their systems in more of a continually
                         old systems to work on current hardware. He says
                                                                                concurrent state to make it easier to adapt to
                         that his customers often resist migrating to newer,
                                                                                newer platforms. Planned, deliberate, and slow
                         more secure operating systems because they are
                                                                                migrations distributed throughout the lifecycle of
                         restricted by notions of 3-year or 5-year software
                                                                                a software product can be more efficient than a
                         refresh cycles. If businesses try to upgrade
                                                                                5-year overhaul.




                         Access Issues: Greater Availability
                         by Focusing on Data
                         bUsinesses can also iMProve resilience                 Now, Sidaway believes, we’ve arrived at a sensible
                         by making access to their systems more secure.         model: A company‘s core asset to be protected is
                         Existing networks often use a variety of different     its data—not its servers or its firewall, or a dotted-
                         security measures. Internet connections are            line perimeter in the sand. Resilience should be
                         secured with firewalls. Mobile users are secured       about making data continuously available to those
                         with virtual private networks. Data is secured with    who should have access to it, and invisible to those
                         encryption. Sidaway believes these disparate           who do not. He believes modern data centers must
                         “bolt-on” security technologies have created an        be designed from the top down without arbitrary
                         overly complex environment that is difficult to        compartmentalization. To increase resilience,
                         manage. “We need to start thinking in terms of         businesses need to change their mindset from
                         everything we need to do to enable our consumer        securing devices to securing data.
                         to access that information in a secure way, and
                         work productively in a secure environment that’s
                         easy to use,” he says.




12 Resilience in the Cyber Era
Workforce Issues:
Becoming Resilience-Aware
Organizations must also accept that data are            NTT collects a list of mistakes made during
protected by people, not machines. To improve           everyday work and emergency response. IT
resilience, they must enable and educate their          workforce members assigned to security then
workforce. But few companies seem to be aware           make it a point to communicate directly, person-
of this requirement. Less than one-third of             to-person—not via e-mail or voice mail or Twitter.
survey respondents from companies that have a           Next, the IT department follows up to make certain
cybersecurity plan say employees are important          employees are following those best practices
stakeholders; in companies without a plan, even         as directed.
fewer recognize the importance of employees.
                                                        Sidaway points out that information security
Padilla has thoroughly documented his                   policies need to be acceptable to the people who
company‘s resilience principles to help educate         will carry them out. “If they‘re not acceptable to
his workforce. At his company, a power outage, or       the employee, people will start working around
a strike affecting the subway system, or a severe       it. You‘ve got to get that balance right, so you can
thunderstorm becomes an opportunity that allows         enforce it with technology. That becomes the part
the workforce to train for a more critical situation.   we have to monitor against compliance. Once you
                                                        architect security into the system with technology,
What NTT learns from these drills it then
                                                        you‘ve got to monitor that. But there‘s also that
documents, with results that can then be
                                                        human element that comes into play, and it‘s
shared with its own customers.
                                                        often ignored when organizations look at risk
                                                        and information security. It‘s people.”




                                                                            Resilience in the Cyber Era 13
The Number of Cyber
                                 Attacks Has Increased...




                                     44%   Per year, to
                                         an average of...




                                      1.4
                                     sUccessfUl attacKs Per
                                     weeK, Per organization




14 Resilience in the Cyber Era
The Industry Differences
th e P e r c ePt i o n s o f t h e c h a l l e n g e s a nD o P Po r t U n i t i e s o f a cyber
econoMy differ by industry. In a survey conducted by the Economist Intelligence
Unit in June and July 2011, for example, 53 percent of respondents from financial
services say that their industry relies on cyber infrastructure to an overwhelming
extent, compared with 36 percent for the entire survey sample. Forty-seven percent
of them also say their industry is more susceptible to cyber threats than their
country or organization, compared with 23 percent overall.

Respondents from the energy sector tend to see the greatest risk at the national
level, perhaps because energy systems—whether electric power networks or
supplies of oil and gas—frequently have national security implications. Invensys
manages such networks in real time and, therefore, cannot afford to utilize
public cloud resources precisely because those resources lie outside of Invensys‘
direct control, says Rakaczky. But it can utilize technologies internally such as
virtualization (the principal ingredient of cloud architectures) to enable greater
direct control, and more avenues for fault tolerance and response to failures.

Invensys designs its networks to literally calculate resilience in real time—for
example, maintaining the status of oil refineries with assets throughout North
America, and registering the capacity and flow of fuel through every segment of
pipe. According to Rakaczky, private cloud architectures can actually help Invensys
utilize its data centers‘ processor power more efficiently, increasing the reliability
of the real-time data it perceives. They can also distribute those data over systems
in such a way that loss of data from one file—which will happen—does not and
cannot destroy any single database.

“A power company will buy one of our systems and deploy it across its generation
stations, controlling maybe five turbines generating a couple of hundred
megawatts of power for a whole network of the grid in the United States,”
he explains. For those clients, security has always been provided by people,
whether they are IT professionals or armed guards. So it only makes sense that
performance, reliability, agility, confidentiality, and other resilience factors are
managed directly by designated, responsible people as well.

Not every industry requires a level of sensitivity to real-time data as Invensys‘
clients. But the resilience principles it has pioneered can apply just as easily to a
financial services provider, for example, as it does to a continental power grid. • •




                                                          Resilience in the Cyber Era 15
Conclusion

                         the cyber threats facing coMPanies have certainly increaseD,
                         but they have been met by a host of powerful new ways to respond to them.
                         Virtualization and cloud strategies now allow large and small companies to
                         manage their data architecture with a flexibility that was impossible a few
                         years ago. New collaboration software allows them to share documents
                         more reliably on secure storage spaces. Modern data centers allow them to
                         make their data continuously available to those who should have access to
                         it, and invisible to those who don’t. A well-trained workforce familiar with
                         cybersecurity issues can help companies train for emergencies, respond
                         effectively, and learn from their experiences. A truly resilient enterprise
                         dynamically innovates and changes its practices, policies, and processes,
                         in response to changing threats from the outside and changing
                         requirements from the inside.




                                                   Resilience is achievable, but companies
                                                   will have to change the way they
                                                   operate to reach their goals. Resilient
                                                   companies are stronger companies.
                                                   By facing the resilience challenge,
                                                   businesses can give their customers
                                                   the trustworthiness and reliability
                                                   they expect and deserve.




16 Resilience in the Cyber Era
About Booz Allen Hamilton
booz allen haMilton is a leaDing ProviDer of management and
technology consulting services to the US government in defense, intelligence,
and civil markets, and to major corporations, institutions, and not-for-profit
organizations. Booz Allen is headquartered in McLean, Virginia, employs more
than 25,000 people, and had revenue of $5.59 billion for the 12 months ended
March 31, 2011.

Booz Allen understands that cybersecurity is no longer just about protecting
assets. It’s about enabling organizations to take full advantage of the vast
opportunities that the ecosystem of cyberspace now offers for business,
government and virtually every aspect of our society.

Those opportunities can be imperiled, however, by rapidly emerging cyber
threats from hackers (hacktivists), organized crime, nation states and terrorists.
We help our clients in both business and government understand the full
spectrum of threats and system vulnerabilities, and address them effectively
and efficiently.

Booz Allen believes the key to cybersecurity today is integration – creating
a framework that “thinks bigger” than technology to encompass policy,
operations, people and management as well. Through such a Mission
Integration Framework, organizations can align these essential areas to
address the real issues, and develop cyber strategies and solutions that
keep pace with a fast-changing world.

To learn more, visit www.boozallen.com. (NYSE: BAH)




        About the Economist Intelligence Unit
        the econoMist in t e l l i g e n c e U n i t i s Pa r t o f t h e e co n o Mi s t g r oU P,
        the leading source of analysis on international business and world affairs. Founded in
        1946 as an in-house research unit for The Economist newspaper, we deliver business
        intelligence, forecasting and advice to over 1.5m decision-makers from the world’s
        leading companies, financial institutions, governments and universities. Our analysts
        are known for the rigour, accuracy and consistency of their analysis and forecasts,
        and their commitment to objectivity, clarity and timeliness.


                                                                                  Resilience in the Cyber Era 17
An Economist Intelligence Unit
                                 research program sponsored by
                                 Booz Allen Hamilton



©2011 Booz Allen Hamilton Inc.

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Resilience in the Cyber Era

  • 1. Resilience in the Cyber Era Building an Infrastructure that Secures and Protects An Economist Intelligence Unit research program sponsored by Booz Allen Hamilton
  • 2. List of Interviewees About the Survey Karen evans National Director, In June and July 2011, the Economist Intelligence U.S. Cyber Challenge Unit conducted a global survey, sponsored nigel inKster Director of Transnational by Booz Allen Hamilton, of 387 executives to Threats and Political Risk, International assess attitudes toward cybersecurity, and Institute for Strategic Studies their progress towards implementing resilience strategies. Nearly one-half (48 percent) of survey linDa laUn Global Business Continuity respondents are board members or C-level and Resiliency Services Consulting Portfolio executives, including 92 CEOs. The respondents and Methods Manager, IBM are based in Asia-Pacific (29 percent), North len PaDilla Senior Director America (26 percent), Western Europe of Technology, NTT Europe (26 percent), Latin America (9 percent), Middle ernie raKaczKy Principal Security East and Africa (7 percent) and Eastern Europe Architect, Invensys (3 percent). More than one-half of the survey respondents (55 percent) work for companies Dave scott Head of Solution with global annual revenues exceeding Consulting, NTT Europe US$500 million. Nineteen different industries Michael shinn CEO, Prometheus Global are represented in the survey sample, including garry siDaway Director of Security financial services (20 percent), professional Strategy, Integralis services (14 percent), energy and natural resources (12 percent), IT and technology JaMes P. g. sterbenz Associate Professor, (10 percent), and manufacturing (8 percent). Department of Electrical Engineering and Computer Science, Communications and Networking Systems Laboratory, University of Kansas
  • 3. Contents Executive Summary .................................................................................................................. 2 Introduction ................................................................................................................................ 3 Resilience: Definitions Matter ............................................................................................... 5 The Proliferating Threat........................................................................................................... 6 The Corporate Response ........................................................................................................ 7 The Government Response ................................................................................................... 9 Sidebar: The Role of Private Public Partnerships..........................................................10 Critical infrastructure issues: Developing Better System Architectures ..............10 Application issues: Resilience Through Better Software ...........................................11 Access issues: Greater Availability by Focusing on Data ...........................................12 Workforce issues: Becoming Resilience Aware .............................................................13 Sidebar: The Industry Differences .....................................................................................15 Conclusion .................................................................................................................................16 About Booz Allen ....................................................................................................................17 About Economist Intelligence Unit ...................................................................................17 Resilience in the Cyber Era 1
  • 4. Executive Summary • the cyber threat has evolveD froM hacKers fUnc tioning as hobbyists to soMething More serioUs anD organizeD. Today’s malicious agents are members of a growing industry of companies designed to infiltrate data centers to capture private information. • resilience can be DefineD as the ability of a system or domain to withstand attacks or failures, and to reestablish itself quickly. But other definitions of resilience vary widely. • the new attitUDe towarD resilience accePts that coMPanies cannot achieve Perfect secUrity or absolUte continUity. Businesses are moving away from the “bunker mentality” that encouraged them to retreat behind so-called “hardened endpoints.” Instead of aiming for a security standard that is impossible to achieve, they should focus on balancing resilience with productivity. • organizations can iMProve resilience by iMProving their critical Data centers and by making access to their systems more secure. Virtualization strategies and off-premise cloud architectures enable these data centers to be more secure than ever. Resilience should be about making data continuously available to those who should have access to it, and invisible to those who do not. • a trUly resilient enterPrise DynaMically innovates anD changes its Practices, Policies, anD Processes, in response to changing threats from the outside and changing requirements from the inside. Organizations must accept that data are protected by people, not machines. To improve resilience, they must enable and educate their workforce. • • Worldwide Internet Penetration 70 % 94 % of hoUseholDs of bUsinesses with are online 10 or More eMPloyees are online 2 Resilience in the Cyber Era
  • 5. Introduction the internet has PenetrateD almost every corner of human activity. Among members of the Organization for Economic Co-operation and Development (OECD), 70 percent of households and 94 percent of businesses with 10 or more employees are online. Worldwide, the number of Internet users is projected to rise from 6.4 per 100 inhabitants in 2000 to 29.7 per 100 by 2010. F IguRE 1 Ever-rising Internet penetration 30 Global ICT Developments, 2000-2010 25 Per 100 inhabitants 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Internet users Fixed (wired) broadband subscriptions Source: ITU World Telecommunication/ICT Indicators database But as the world‘s digital market expands, so do One-third (32 percent) of executives say their the threats to its security. The estimated median country‘s economy relies on cyber infrastructure to cost of cyber crime for an organization—including an overwhelming extent. A further 54 percent say loss of property, loss of productivity, and cost cyber infrastructure is at least of equal importance to remediate—rose from US$3.8 million in 2010 to their country‘s growth as other factors. When to US$5.9 million in 2011, according to Ponemon executives were asked the same question Institute’s Second Annual Cost of Cyber Crime with respect to the economic growth of their Study (2011). The number of cyber attacks has also organizations, 41 percent of respondents consider increased by 44 percent per year, to an average of cyber infrastructure more important to their 1.4 successful attacks per week, per organization. organization‘s growth than other factors, and 48 percent consider it of equal importance. A survey conducted for this research program has confirmed the Internet‘s benefits and its risks. Resilience in the Cyber Era 3
  • 6. F IguRE 2 To what extent does the economic performance of your organization and the country where you are located rely on cyber infrastructure? Your Company 100% 41% 48% 10% 1% Your Country 100% 32% 54% 11% 3% To an overwhelming extent (cyber infrastructure is more important to growth than other factors) To some extent (cyber infrastructure is of equal importance to growth as other factors) To a small extent (cyber infrastructure is less important to growth than other factors) Don’t know Source: Economist Intelligence Unit survey, July 2011 While the threats to cybersecurity for the world‘s resilient enterprise dynamically innovates and businesses remain serious—and evolving, changes its practices, policies, and processes, businesses are moving away from the “bunker in response to changing threats from the outside mentality” that encouraged them to retreat and changing requirements from the inside. behind so-called “hardened endpoints”. Web- Educating its workforce about the nature and based applications, mobile devices, and cloud function of these changes is one of the key paths infrastructures are changing the business and to greater resiliency. technology landscape simultaneously. A truly “The number of cyber attacks has also increased by 44 percent per year, to an average of 1.4 successful attacks per week, per organization.” 4 Resilience in the Cyber Era
  • 7. Resilience: Definitions Matter nigel inKster, Director of Transnational Threats Resilience means something entirely different and Political Risk at the International Institute for to companies that are closely integrated into Strategic Studies, offers a scientific definition of a nation’s critical infrastructure—be it the cyber resilience: “the ability of a system or domain stock market, electric rail networks, or nuclear to withstand attacks or failures, and in such events, power stations. “We talk to our customers about to reestablish itself quickly.” what we call continuous service delivery,” says Garry Sidaway, Director of Security Strategy for But other definitions of resilience vary widely. In Integralis, a global security consulting firm. “Whilst 2010, the US Department of Homeland Security components might fail or you might have an commissioned a study on how institutions were incident, it’s about ensuring that service is still implementing resilience principles. Its analysts being delivered and the integrity of that service came up with 119 different definitions, and is still there.” concluded that a broader, more cohesive definition of resilience should include The new attitude in achieving resilience is to plan flexibility and adaptability. for acceptable levels of data loss, unit failures, and compromise. This may seem alien to executives Professor James P. G. Sterbenz, from the who have historically maintained a “zero-tolerance” Communications and Networking Systems policy toward failures. But new cloud hardware Laboratory at Kansas University, has been architectures are demonstrating that everyday working on clarifying the concept of resilience for events like storage device failures and data loss governments and organizations. The principles he can be tolerated when redundancies are built and his colleagues have developed as part of the into the system. university’s ResiliNets data network architecture project have been adopted by the European The US Department of Homeland Security Union’s government security agency, ENISA, and concluded in recent studies that “zero-tolerance” are in the process of becoming adopted by the policies led to the perception that every unit of the US Department of Homeland Security. business, whether digital or human, was critically important. When everything is critical, nothing is Professor Sterbenz points out that notions of critical. When organizations enact more flexible resilience can include several concepts that mean tolerance principles, failures that would have shut different things to different people. “Reliability down processes or even entire networks in an and availability are very different,” he explains. “A earlier era, won‘t even be noticed by customers. reliable system is one that operates for a specified period of time, and you say what the probability is. Availability, on the other hand, is the probability that something will be there when you need it.” Resilience in the Cyber Era 5
  • 8. The Proliferating Threat the cyber threat has evolveD from hackers leading up to these reports than in the preceding functioning as hobbyists to something more 18 years combined. serious and organized. Today‘s malicious agents “From a risk management point of view, there’s are members of a growing industry of companies a whole new set of variables that have to be designed to infiltrate data centers to capture considered,” says Mike Shinn, CEO of US-based private information. Their primary strategy is to Prometheus Global, a security consulting firm induce unsuspecting users to install malware on whose clients have included the White House and their PCs. Once installed, the malware converts US Department of Defense (DoD). “There’s a fairly the PCs into inadvertent attackers of the agents‘ widespread increase in economically directed final targets—data centers at Amazon, Rackspace, criminal activity [for] the theft of intellectual and elsewhere. In the summer of 2011, a number property. Cyber criminals are now targeting of security providers, including UK-based security everything from client lists, internal strategy services provider Webroot and other members of documents, designs—everything up to and the Cloud Security Alliance, produced reports on including information held by governments that these malware attacks. More instances of malware- would be of economic value.” based attacks were reported in the 18 months F Igu RE 3 What type(s) of cyber incident(s) has your organization experienced in the past year? Select all that apply. Phishing 46% Malware 45% Denial of service attack against website 19% External data breach 17% Internal data breach 17% Cyber espionage 10% Other, please specify 2% We did not experience any cyber incident in the past year 16% Don’t know 13% Source: Economist Intelligence Unit survey, July 2011 6 Resilience in the Cyber Era
  • 9. The Corporate Response the initial corPorate resPonses to cyber Linda Laun, Global Consulting Portfolio and attacks have failed to address deficiencies in Methods Manager for IBM’s Business Continuity network architectures that allow the latest cyber and Resiliency Services team, notes that attacks to occur. Ernie Rakaczky, Principal Security companies tend to focus on event-driven issues, Architect with Invensys’ process automation group, things that are huge in scope—such as natural believes that companies‘ efforts throughout disasters, pandemics, power failures, and civil the last decade have led businesses to adopt a unrest—as triggers for invoking security measures. “fortress mentality” to protect their infrastructure. Laun believes that most companies know how to Although setting up firewalls and zones, policies, approach risks associated with security and data and procedures makes sense, they should not be issues such as data loss or corruption, viruses, done in a “reactionary mode,” Rakaczky says. and worms, but she says they still struggle when dealing with risks associated with business issues The survey paints a mixed picture of the current like governance, compliance, audits, scalability, state of corporate cybersecurity strategies. and performance. Some 53% of our survey respondents say their organization has a cybersecurity strategy already Laun believes the problem is that responsibilities in place. Thirty-three percent of respondents admit for these other security issues are confined within they have no cyber-resilience strategy in place, organizational silos. IBM advocates what it calls and 14 percent were unsure. When asked to check a Business Resiliency Management Framework three of the biggest barriers to their companies (BRF) to distribute responsibility across multiple developing cybersecurity initiatives, among a list business units. The goal is to establish a centralized of nine, 41 percent of respondents cite lack of governance structure that allows stakeholders knowledge of the threat as holding back within the silos to set the direction of the program their companies. together through policy, measure success, and then “enforce” its policies. Resilience in the Cyber Era 7
  • 10. 41% When asked to check three of the biggest barriers to their companies developing saiD lacK of KnowleDge cybersecurity of the threat was holDing bacK their coMPanies initiatives The new attitude toward resilience accepts that be more productive no matter where they are or companies cannot achieve perfect security or what devices they are using. “Whether it’s working absolute continuity. Instead of aiming for a security regular hours or out-of-hours, whether it’s on a standard that is impossible to achieve, they should personal device or business device, how do we focus on balancing resilience with productivity. “It enable them to work and be productive in their is all about enablement,” proclaims Integralis’ Garry jobs? That is the change in information security Sidaway. Instead of being seen as forces that say that we’ve got to drive towards, and we have a “No,” he believes IT departments should ask how great opportunity to do that.” they can enable their company’s employees to F IguRE 4 Does your organization have a cybersecurity strategy? 14% Don’t know 53% Yes 33% No Source: Economist Intelligence Unit survey, July 2011 “Whether it’s working regular hours or out-of-hours, whether it’s on a personal device or business device, how do we enable them to work and be productive in their jobs? That is the change in information security that we’ve got to drive towards, and we have a great opportunity to do that.” 8 Resilience in the Cyber Era
  • 11. The Government Response all aroUnD the worlD, governments are think governments could encourage greater expected to provide the leadership role for cooperation between public and private sectors; cybersecurity and resilience—a topic they are and 56 percent think governments could promote only just beginning to address. Executives believe technology innovation through programs such as their organizations and their governments cyber competitions. could devote more resources to security issues. Although 87 percent of respondents believe Approximately 67 percent say their organization improved understanding should come from needs to pay more attention to cyber risks, and a greater partnership between government less than one-quarter (23 percent) think their and private industry, a far lesser number government is doing enough to promote cyber (36 percent) believe government should actually resilience. When asked whether they believed take the leadership role in maintaining cyber their country could do more to promote resilience, security. In short, businesses want help, and they 57 percent of respondents said they think their want it from government. But they do not want governments could improve communication government to take control of the issue. and awareness of cybersecurity issues; 60 percent F IguRE 5 In your opinion, who is primarily responsible for maintaining cybersecurity? National government(s) 36% Individual organization(s) 27% Multilateral organization(s) 24% Industry 11% Other, please specify 1% Don’t know 1% Source: Economist Intelligence Unit survey, July 2011 Resilience in the Cyber Era 9
  • 12. Critical Infrastructure Issues: Developing Better System The Role of Public/ Architectures Private Partnerships DesPite the MoDest sUccess of PUblic/Private the first way to iMProve resilience is to PartnershiPs (PPP) to Date, executives see some value improve an organization‘s critical infrastructure— in promoting collaboration. Eighty-seven percent of survey its data center. Newer infrastructures enable respondents agree that cyber resilience relies on some form of these data centers to be more secure than ever, partnership between government, civil society, and business. primarily because fault tolerance, replication, and workload balancing are all built into newer DARPA, the (DoD) agency tasked with technological innovation, operating systems and newer hardware. These offers a successful example of how to stimulate private sector new structures are more effective than the innovation for the greater good. The agency assembles teams “endpoint” hardening approach to system security, of experts who pursue innovative ideas. Little money is lost if which focused on hardening security at PCs, they are unsuccessful, while successful projects are picked up by smartphones, and other endpoint devices. the private sector. One such case was ARPANET, the precursor to today‘s Internet. Among more recent examples are the DARPA Dave Scott, the head of NTT Europe‘s Solution Grand Challenges, a cash prize competition last held in 2007 Consulting team admits that, although he that stimulated the development of driverless vehicles. was once an advocate of that approach, the More recently, the DoD rolled out the Defense Industrial Base precautions he took weren‘t enough. “I may have (DIB), a PPP initiative designed to share cyber threat information been naïve until my first data center outage,” Scott among organizations that support the US defense industry. says, “at which point, I wised up quite quickly. In August 2011, the trial was pronounced successful, and You can put together what you think are the best the initiative is now being extended to include certain security endpoints and resilience within a single critical infrastructures. facility, and something will still happen that takes the whole thing out. You assume then that true The U.S. Cyber Challenge offers yet another model of public/ resilience and true availability mean more than just private partnership. Karen Evans, the organization‘s national endpoint security.” director, said she first got involved in the U.S. Cyber Challenge, “to test the hypothesis that you could hold an online competition To improve security at data centers, it is necessary and identify talent.” The U.S. Cyber Challenge holds numerous to address the three classes of operations they competitions and events throughout the year and now also involve: processing (the execution of programs hosts a summer camp program, which in 2011 received 1,000 and the production of data, often called registrants for 200 available slots. Evans and her colleagues “compute power” by service providers); storage seek to harness the competitive nature of Americans and, in the (the containment of data); and interconnect (the process, identify highly talented individuals. The goal is to use the transmission of data and functionality). In an competition to eventually get 10,000 very skilled people to enter the workforce, taking modern resilience principles with them. • • 10 Resilience in the Cyber Era
  • 13. earlier era, the processor was a central processing Organizations may use a hosted provider such unit (CPU), the storage amounted to a couple of as Rackspace for their servers, or a cloud service hard disk drives, and interconnect was managed provider (CSP) such as Rackspace, Amazon, GoGrid, through Ethernet cables. or BlueLock to host all or part of their data center at various times. This allows them to lease more Two new factors have changed the way data compute power during peak usage times as well as centers are managed. First, companies often other efficiencies. employ virtualization strategies to improve compute power and storage in their data centers. Len Padilla, Senior Director of Technology for A vast array of storage devices—on- and off- NTT Europe, believes that cloud architecture premise and clusters of processors—are made to allows more companies to build failure and fault appear to the operating system as a single pool tolerance into their data architecture. Companies of storage and a single processing engine. These now have new ways to make their systems pools are then “connected” to the network by geographically blind and ramp up resources way of software that simulates a physical network to address a load in a particular way. “That’s adapter. The result is a virtual machine whose size something that very big organizations with very and location can be changed while it is still running. big IT budgets have always been able to do, but now cloud computing allows even smaller and Companies may also move part or all of their medium companies to do the same thing,” infrastructure off-premise via the cloud. explains Padilla. Application Issues: Resilience Through Better Software another way to iMProve resilience be used across a firm with auditing and versioning is through more modern applications. Newer services are far more concrete and trustworthy. software can be better managed than older Similarly, many company employees send sensitive software. However, too many organizations rely documents as attachments to one another via on work processes geared around old and even e-mail and institute security measures for ensuring outmoded applications. For example, law firms encryption and validating receipts. A better institute chains of custody around their document- alternative is to create shared storage spaces where handling processes that presume that documents only permitted individuals may be made aware are transferred from person to person. Newer of a document‘s existence. collaboration software that allows documents to Resilience in the Cyber Era 11
  • 14. Invensys’ Rakaczky explains that he still works with software before the end of a cycle, the cost often customers who use software and methods that gets counted as a budget overrun. date back to the turn of the century. In some cases, Instead, Rakaczky tries to help his customers he has had to employ virtualization just to enable keep their systems in more of a continually old systems to work on current hardware. He says concurrent state to make it easier to adapt to that his customers often resist migrating to newer, newer platforms. Planned, deliberate, and slow more secure operating systems because they are migrations distributed throughout the lifecycle of restricted by notions of 3-year or 5-year software a software product can be more efficient than a refresh cycles. If businesses try to upgrade 5-year overhaul. Access Issues: Greater Availability by Focusing on Data bUsinesses can also iMProve resilience Now, Sidaway believes, we’ve arrived at a sensible by making access to their systems more secure. model: A company‘s core asset to be protected is Existing networks often use a variety of different its data—not its servers or its firewall, or a dotted- security measures. Internet connections are line perimeter in the sand. Resilience should be secured with firewalls. Mobile users are secured about making data continuously available to those with virtual private networks. Data is secured with who should have access to it, and invisible to those encryption. Sidaway believes these disparate who do not. He believes modern data centers must “bolt-on” security technologies have created an be designed from the top down without arbitrary overly complex environment that is difficult to compartmentalization. To increase resilience, manage. “We need to start thinking in terms of businesses need to change their mindset from everything we need to do to enable our consumer securing devices to securing data. to access that information in a secure way, and work productively in a secure environment that’s easy to use,” he says. 12 Resilience in the Cyber Era
  • 15. Workforce Issues: Becoming Resilience-Aware Organizations must also accept that data are NTT collects a list of mistakes made during protected by people, not machines. To improve everyday work and emergency response. IT resilience, they must enable and educate their workforce members assigned to security then workforce. But few companies seem to be aware make it a point to communicate directly, person- of this requirement. Less than one-third of to-person—not via e-mail or voice mail or Twitter. survey respondents from companies that have a Next, the IT department follows up to make certain cybersecurity plan say employees are important employees are following those best practices stakeholders; in companies without a plan, even as directed. fewer recognize the importance of employees. Sidaway points out that information security Padilla has thoroughly documented his policies need to be acceptable to the people who company‘s resilience principles to help educate will carry them out. “If they‘re not acceptable to his workforce. At his company, a power outage, or the employee, people will start working around a strike affecting the subway system, or a severe it. You‘ve got to get that balance right, so you can thunderstorm becomes an opportunity that allows enforce it with technology. That becomes the part the workforce to train for a more critical situation. we have to monitor against compliance. Once you architect security into the system with technology, What NTT learns from these drills it then you‘ve got to monitor that. But there‘s also that documents, with results that can then be human element that comes into play, and it‘s shared with its own customers. often ignored when organizations look at risk and information security. It‘s people.” Resilience in the Cyber Era 13
  • 16. The Number of Cyber Attacks Has Increased... 44% Per year, to an average of... 1.4 sUccessfUl attacKs Per weeK, Per organization 14 Resilience in the Cyber Era
  • 17. The Industry Differences th e P e r c ePt i o n s o f t h e c h a l l e n g e s a nD o P Po r t U n i t i e s o f a cyber econoMy differ by industry. In a survey conducted by the Economist Intelligence Unit in June and July 2011, for example, 53 percent of respondents from financial services say that their industry relies on cyber infrastructure to an overwhelming extent, compared with 36 percent for the entire survey sample. Forty-seven percent of them also say their industry is more susceptible to cyber threats than their country or organization, compared with 23 percent overall. Respondents from the energy sector tend to see the greatest risk at the national level, perhaps because energy systems—whether electric power networks or supplies of oil and gas—frequently have national security implications. Invensys manages such networks in real time and, therefore, cannot afford to utilize public cloud resources precisely because those resources lie outside of Invensys‘ direct control, says Rakaczky. But it can utilize technologies internally such as virtualization (the principal ingredient of cloud architectures) to enable greater direct control, and more avenues for fault tolerance and response to failures. Invensys designs its networks to literally calculate resilience in real time—for example, maintaining the status of oil refineries with assets throughout North America, and registering the capacity and flow of fuel through every segment of pipe. According to Rakaczky, private cloud architectures can actually help Invensys utilize its data centers‘ processor power more efficiently, increasing the reliability of the real-time data it perceives. They can also distribute those data over systems in such a way that loss of data from one file—which will happen—does not and cannot destroy any single database. “A power company will buy one of our systems and deploy it across its generation stations, controlling maybe five turbines generating a couple of hundred megawatts of power for a whole network of the grid in the United States,” he explains. For those clients, security has always been provided by people, whether they are IT professionals or armed guards. So it only makes sense that performance, reliability, agility, confidentiality, and other resilience factors are managed directly by designated, responsible people as well. Not every industry requires a level of sensitivity to real-time data as Invensys‘ clients. But the resilience principles it has pioneered can apply just as easily to a financial services provider, for example, as it does to a continental power grid. • • Resilience in the Cyber Era 15
  • 18. Conclusion the cyber threats facing coMPanies have certainly increaseD, but they have been met by a host of powerful new ways to respond to them. Virtualization and cloud strategies now allow large and small companies to manage their data architecture with a flexibility that was impossible a few years ago. New collaboration software allows them to share documents more reliably on secure storage spaces. Modern data centers allow them to make their data continuously available to those who should have access to it, and invisible to those who don’t. A well-trained workforce familiar with cybersecurity issues can help companies train for emergencies, respond effectively, and learn from their experiences. A truly resilient enterprise dynamically innovates and changes its practices, policies, and processes, in response to changing threats from the outside and changing requirements from the inside. Resilience is achievable, but companies will have to change the way they operate to reach their goals. Resilient companies are stronger companies. By facing the resilience challenge, businesses can give their customers the trustworthiness and reliability they expect and deserve. 16 Resilience in the Cyber Era
  • 19. About Booz Allen Hamilton booz allen haMilton is a leaDing ProviDer of management and technology consulting services to the US government in defense, intelligence, and civil markets, and to major corporations, institutions, and not-for-profit organizations. Booz Allen is headquartered in McLean, Virginia, employs more than 25,000 people, and had revenue of $5.59 billion for the 12 months ended March 31, 2011. Booz Allen understands that cybersecurity is no longer just about protecting assets. It’s about enabling organizations to take full advantage of the vast opportunities that the ecosystem of cyberspace now offers for business, government and virtually every aspect of our society. Those opportunities can be imperiled, however, by rapidly emerging cyber threats from hackers (hacktivists), organized crime, nation states and terrorists. We help our clients in both business and government understand the full spectrum of threats and system vulnerabilities, and address them effectively and efficiently. Booz Allen believes the key to cybersecurity today is integration – creating a framework that “thinks bigger” than technology to encompass policy, operations, people and management as well. Through such a Mission Integration Framework, organizations can align these essential areas to address the real issues, and develop cyber strategies and solutions that keep pace with a fast-changing world. To learn more, visit www.boozallen.com. (NYSE: BAH) About the Economist Intelligence Unit the econoMist in t e l l i g e n c e U n i t i s Pa r t o f t h e e co n o Mi s t g r oU P, the leading source of analysis on international business and world affairs. Founded in 1946 as an in-house research unit for The Economist newspaper, we deliver business intelligence, forecasting and advice to over 1.5m decision-makers from the world’s leading companies, financial institutions, governments and universities. Our analysts are known for the rigour, accuracy and consistency of their analysis and forecasts, and their commitment to objectivity, clarity and timeliness. Resilience in the Cyber Era 17
  • 20. An Economist Intelligence Unit research program sponsored by Booz Allen Hamilton ©2011 Booz Allen Hamilton Inc.