State Governments at Risk: The Data Breach Reality

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1 State Governments at Risk: The Data Breach Reality NCSL Legislative Summit August 5, 2015 Doug Robinson, Executive Director National Association of State Chief Information Officers (NASCIO)

2 About NASCIO National association representing state chief information officers and information technology executives from the states, territories and D.C. Founded in 1969 NASCIO's mission is to foster government excellence through quality business practices, information management, and technology policy.

3 Top Ten: State CIO Priorities for Security 2. Cloud Services 3. Consolidation/Optimization 4. Broadband/Wireless Connectivity 5. Budget and Cost Control 6. Human Resources/Talent Management 7. Strategic IT Planning 8. Mobile Services/Mobility/Enterprise Mobility 9. Disaster Recovery/Business Continuity 10. Customer Relationship Management Source: NASCIO State CIO Ballot, November 2014

4 State Governments at Risk! States are attractive targets data! More aggressive threats organized crime, ransomware, hacktivism Nation state attacks Critical infrastructure protection Insider threats employees, contractors Emerging IT and data on the move Need for continuous training, awareness

5 IT Security Risks in the States Protecting legacy systems Malicious software Inadequate policy compliance Mobile devices and services Use of social media platforms Use of personallyowned devices (BYOD) for state business Adoption of cloud services; rogue cloud users Foreign statesponsored espionage Third-party contractors and managed services

6 State Governments at Risk: Time to move forward October 2014 #StatesAtRisk

7 Key Themes from the 2014 Study Maturing role of the CISO Budget-strategy disconnect Cyber complexity challenge Talent crisis Deloitte-NASCIO Cybersecurity Study

8 Cyber complexity challenge Sophistication and sheer range of cyber threats continue to evolve Regulatory complexity is growing Complex and mostly federated state government environment poses governing challenges CISOs and business leaders are not on the same page regarding the states abilities to protect against an 8 attack 2014 Deloitte-NASCIO Cybersecurity Study

9 By the Numbers: Consequences For States Government agencies have lost more than 94 million records of citizens since 2009 Average number of days between discovery and disclosure: 58 Average cost per breached record in US: $201 Average cost per breach: $5.8 million Sources: "Rapid7 Report: Data Breaches in the Government Sector." Rapid7. September 6, Cost of Data Breach Study, Ponemon Institute, Navigant Breach report, March 2014

10 U.S. Benchmark Data: Root Causes of a Data Breach 31% 44% 25% Malicious or criminal attacks System Glitch Human Error Source: 2014 Cost of Data Breach Study, Ponemon Institute

11 Who s Responsible for Protecting State Data? Chief Information Officers Information Security Officers Agency Leaders Data Owners Employees Human Resources Legal Departments Third Party Contractors Elected officials

12 Unfortunately state officials are often looking at their data breach in a rear view mirror. After the incident

13 NASCIO s Cybersecurity Call to Action Key Questions for State Leaders Does your state government support a culture of information security with a governance structure of state leadership and all key stakeholders? Has your state conducted a risk assessment? Is data classified by risk? Are security metrics available? Has your state implemented an enterprise cybersecurity framework that includes policies, control objectives, practices, standards, and compliance? Is the NIST Cybersecurity Framework a foundation? Has your state invested in enterprise solutions that provide continuous cyber threat detection, mitigation and vulnerability management? Has the state deployed advanced cyber threat analytics? Have state employees and contractors been trained for their roles and responsibilities in protecting the state s assets? Does your state have a cyber disruption response plan? A crisis communication plan focused on cybersecurity incident?

14 Before the Breach 1. Inventory data and conduct risk assessments. Deploy tiered security measures as appropriate. 2. Review contractor and vendor agreements. 3. Review privacy policies and disclosure requirements. Legal counsel must be engaged. 4. Develop a actionable incident response plan with a crisis communications annex. Test the plan. 5. Train employees on their roles and responsibilities. Ensure policies align with incident response.

15 Data Breach Guidance in Seven Steps 1. Is contact information current on your data breach response team list? 2. Is your data breach response plan comprehensive? 3. Are your vendor contracts in order? 4. Are notification guidelines clear? 5. Are third parties with access to your data as secure as possible? 6. Is your IT security effectively protecting data? 7. Is your staff security-aware? Source: Experian Data Breach Response Guide

16 Data Breaches: Not If But When

17 #StatesAtRisk

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