Cyber-Security Risk- IP Theft and Data Breaches Protecting your Crown Jewels Internally and with Your Key Third Parties
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1 Cyber-Security Risk- IP Theft and Data Breaches Protecting your Crown Jewels Internally and with Your Key Third Parties Pamela Passman President and CEO Center for Responsible Enterprise And Trade (CREATe.org) Glenn T. Ware, Esq. Principal, Leader, International Anti- Corruption, Corporate Intelligence and Strategic Threat Management PriceWaterhouseCoopers -PwC Luis Canuto Global Ethics Investigations Co-Leader, Latin America Ethics Compliance Director Dell Globalized Marketplace Fragmented Value Chains Information Digitalization Mobile Workforce 1
2 Threat Actor Objectives Vulnerabilities Risks / Outcomes Nation States Malicious Insiders Competitors Transnational Organized Crime Hacktivists Military technology, help national companies Competitive advantage, financial gain, national goals Competitive advantage Financial gain Political/social goals Processes People Technology IP Theft Data Breaches Disrupted Business Reputational issues Lost revenues Lawsuits Fines Source: CREATe.org PwC Report: Economic Impact of Trade Secret Theft: A framework for companies to safeguard trade secrets and mitigate potential thefts, February 2014 Intellectual Property Counterfeits 7-8% total world trade is counterfeit Piracy: Consumers will spend 1.5 billion hours and US$22 billion identifying, repairing, recovering from malware Global enterprises will spend US$114 billion to deal with impact of a malware-induced cyber-attack Users of stolen software are particularly vulnerable to malware and other cyber-security threats Trade secret theft: 1-3% GDP of US and other advanced industrial economies Data Breaches On the rise: Malicious code and sustained probes have increased the most: average of 17 malicious codes/month, 12 probes/month, 10 unauthorized access incidents Greatest threat: Malicious insider or criminal attack Uncertainty about steps to take: 50% low/no confidence they are making the right investments in people, process and technologies to address threats Source: 2014 Cost of Data Breach Study: Sponsored by IBM, Conducted by Ponemon Institute LLC. 2
3 Role of the Legal and Compliance Departments Legal & Compliance Roles Regulating cyber security, IP theft and data breaches Two types of regimes Substantive regimes: - E.O , Improving Critical Infrastructure Security, calls for Voluntary Cybersecurity Standards for Critical Infrastructure - Market forces drive a trickle-down regulation environment - Standard of care Substantive regimes: - CF Disclosure Guidance: Topic No. 2 - State breach notification laws PwC 6 3
4 Looking Beyond Working with 3 rd parties, increased regulatory pressure Some recent changes in the regulatory environment 1. Increase in congressional inquiries 2. FBI / USSS Cooperation 3. Increased calls for FTC involvement 4. PLA Indictment Other considerations 1. Establish line of communication in event of an attack 2. Understand obligations which result from enhanced informationsharing. PwC 7 On the cyber threat landscape, insiders can potentially cause the most damage Adversary Motives Targets Impact Nation State Economic, political, and/or military advantage Trade secrets Sensitive business information Emerging technologies Critical infrastructure Loss of competitive advantage Disruption to critical infrastructure Organized Crime Immediate financial gain Collect information for future financial gains Financial / Payment Systems Personally Identifiable Information Payment Card Information Protected Health Information Costly regulatory inquiries and penalties Consumer and shareholder lawsuits Loss of consumer confidence Hacktivists Influence political and /or social change Pressure business to change their practices Corporate secrets Sensitive business information Information related to key executives, employees, customers & business partners Disruption of business activities Brand and reputation Loss of consumer confidence Insiders Personal advantage, monetary gain Professional revenge Patriotism Sales, deals, market strategies Corporate secrets, IP, R&D Business operations Personnel information Trade secret disclosure Operational disruption Brand and reputation National security impact PwC 8 4
5 Building a comprehensive program for insider threat management is critical to security Program framework Sample program outcomes Program policies and governance structure Policy and Process Threat and vulnerability assessments Thorough risk analysis of facilities or product lines, with recommendations Training, Awareness, and Communication Governance & Organization Tools and Data Analytics Policies and processes for investigation, diligence, monitoring, escalation, and incident response Risk-ratings for personnel and 3 rd party corporate partners Country and region specific strategies for managing localized insider threats Threat Assessments and Analysis Training, awareness, and workforce messaging programs across ethics and information security Case management, technical tools, and data fusion analytics Insider Threat Detection and Monitoring Insider Threat Investigation Technology Consulting Threat Intelligence Host / network monitoring and surveillance Network/host sensors Internal business and HR processes Computer forensics tools and processes Data loss awareness Background investigations and due diligence Forensic investigation / interviews Honey Tokens and beacons Risk indicator ontology Evidence preservation and documentation Behavioral analytics Risk rating tools and processes Damage / data loss assessment Identity/Access management Network/host behavioral analysis Law enforcement / government coordination Threat intelligence analytics Triage, escalation, and decision support Case management platforms process PwC 9 Better mgmt. decisions: Consolidated Reporting Broader Data Analytics E-to-E Risk Management Ethics Compliance IP Breaches Secure Database Security Ethics HR IT Security Privacy 5
6 Legal measures Legislation Laws Contracts Law Enforcement Pamela Passman Center for Responsible Enterprise And Trade (CREATe.org) Glenn T. Ware, Esq. PriceWaterhouseCoopers - PwC Luis Canuto Dell 6
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