Security Policy Evaluation Security Policy Evaluation Using Balanced Using Balanced

ScorecardsScorecards

Mohamad El OstaMBA 737

April 29, 2008

AgendaAgenda

• Performance Evaluation• Methodology Limitation• Balanced Scorecards• Perspectives and Methodology• Security Metrics• Conclusion

Performance EvaluationPerformance Evaluation

• Managers and chief executives have to be proactive in tracking the operation of their business

• Organizations used to track their performance by relying solely on financial metrics like:

• Increase of revenue• Increase of profit margin• Return on assets (ROA) and investments (ROI)

LimitationsLimitations

• Vital dimensions of the business can go unnoticed by time if financial metrics alone were used.

• Customers might be unsatisfied with the product and are waiting for the competition to switch products.

• Employees’ emotions due to dissatisfaction might be running high, until “crunch point” suddenly arise.

DefinitionDefinition

• Balanced Scorecard (BSC): “is a strategic planning and management system that is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.”1

• As defined by the Balanced Scorecard Institute

1 http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx, 04/27/2008

HistoryHistory

• The “Balanced Scorecard” term was coined in 1992 by two authors:

• Robert S. Kaplan – Professor at Harvard Business School• David P. Norton

• Harvard Business Review article titled: “The Balanced Scorecard: Measures that Drive Performance.”

• Performance measurement reporting existed before since the 50s at General Electric.

FactsFacts

• By 2006, 70% of organizations at least implemented partially a BSC.

• Private sector, public sector and non-profit organizations have successfully implemented BSC.

• French process engineers created “Tableau de Bord” – dashboard – for measuring performance in the early 1900s.

BSC Perspectives BSC Perspectives

• BSC translates the business strategy into four perspectives:

1. Customer2. Financial3. Business Processes4. Learning and Growth

• Goal is to achieve a balance in the following:1. Between internal and external measures2. Between objective and subjective measures3. Between performance and drivers of results

Diagram of the BSCDiagram of the BSC

Comprehensive MeasuresComprehensive Measures

Perspective Measures

Customer Customer satisfaction, retention, market share

Financial Income, return on asset (ROA).

Business Process Cost, throughput, quality.

Learning and Growth Employee satisfaction, retention, skill sets.

Planning AreasPlanning Areas

• There are four areas of planning for each perspective:

1. Objectives:• The set of results that are needed by the business to

sustain its vision based on its strategy.

2. Measures:• Are the observable key performance indicators (KPI)

that measures the progress of each objective.

Planning AreasPlanning Areas

3. Targets:• Are the set values of measures that the business

wants to achieve by the objectives.

4. Initiatives:• A set of action items for each objective created as

a plan of how to reach the objective.

BSC TemplateBSC Template

Source: http://www.balancedscorecard.org/BSCResources/TheNineStepstoSuccess/tabid/58/Default.aspx

Implementation ProcessImplementation Process

• Implementing BSC is done through 4 steps:1. Translation of Vision:

• Create strategic objectives from the vision.• Setup quantifiable metrics to measure objectives.

2. Communicating Objectives:• Create SMART goals from the strategic objectives.• Communicate these goals through out the

organization.

Implementation ProcessImplementation Process

3. Setting Targets and Aligning Initiatives:• Create achievable targets for each perspective.• Align initiatives to achieve specified targets.

4. Learning and Feedback:• Get feedback on setup initiatives through metrics.• Learn continuously from success/failure of

strategy.

Benefits of BSCBenefits of BSC

• Enhance organizational focus on results and strategy.• Improve business performance by tracking a

comprehensive set of KPIs.• Align the organizational strategy with the projects and

work employees do.• Concentrate on the drivers of future performance.• Enhance the communication of vision and strategy

throughout the organization.• Prioritize the business projects based on the strategy.

Information SecurityInformation Security• Information Security (IS): “is protecting

information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction”1

• “The truth is that security is as much an issue of people and process as it is technology.”2

• Tracking the performance and compliance of a security policy is as important as having one!1 http://www.law.cornell.edu/uscode/html/uscode44/usc_sec_44_00003542----000-.html2 http://www.techlinks.net/CommunityPublishing/tabid/92/ArticleType/ArticleView/ArticleID/3855/Default.aspx, 04/27/2008

IS ComponentsIS Components

• Information Security has 3 components – commonly known as the “CIA triad”:

1. Confidentiality: means that data can only be accessed by authorized personnel.

2. Integrity: means that data can not be created, changed, or deleted without authorization.

3. Availability: means that information and their systems are available and correctly functioning when needed.

IS Triad DiagramIS Triad Diagram

IS and BSCIS and BSC

• BSC have been used in every function of the business.

• Recently organizations started to use BSC to manage the implementation of their security policy.

• ISO-17799 is a standard of security controls that can be implemented and monitored through the use of BSC.

Security MetricsSecurity Metrics

• Security Metric: “For an entity (system, product, facility, asset or other) for which security is a meaningful concept, there are identifiable attributes that collectively characterize the security of that entity. A security metric, or combination of metrics, is a quantitative measure of much of that attribute the entity possesses.”1

1 https://www.securityexecutivecouncil.com/content/Security_Metrics_09_14_05_v4_NN.ppt

Example MetricsExample Metrics

• Some example of security metrics used in the industry:

1. Intrusion attempts2. Invalid logins3. Admin violations4. Spam detected5. Viruses detected6. Unauthorized access attempt7. …

Proposed BSC for SecurityProposed BSC for Security

• Dr. Lori L. DeLooze has created a BSC for computer security.1

• She has proposed this scorecard based on 4 perspectives:

1. Users2. System Administrators3. System Owners4. Auditors

1 http://www.itoc.usma.edu/workshop/2006/program/Presentations/IAW2006-01-3.pdf

Security BSC Diagram*Security BSC Diagram*

* http://www.itoc.usma.edu/workshop/2006/program/Presentations/IAW2006-01-3.pdf

Security StrategySecurity Strategy

• Vision: to have a secure information system that provides the “CIA triad.”

• Strategy has 2 components:1. Provide cost-efficient security service2. Reduce risk and damage from attacks

• Each perspective will be analyzed and evaluated based on those 2 strategic criteria.

Security BSC for S1Security BSC for S1

Objective Measure Target

Users Provide secure communications.

% of users with access to service.

100%

Owners Cost-effective security system.

Return on investment (ROI)

200%

Administrators Ensuring system up and running.

System availability. 99.9%

Auditors Reporting on current system.

% of identified vulnerable systems.

100%

Security BSC for S2Security BSC for S2

Objective Measure Target

Users Trained on security principles.

% of users with certification.

100%

Owners Monitoring and control of systems.

% of reviewed audit logs.

80%

Administrators Certified with latest practices.

% of SA certified. 100%

Auditors Compliance with standard.

% of systems complied

100%

Q&AQ&A