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How to Make Your Enterprise Cyber Resilient

Banks and other financial services firms need to recognize the threats of cyber risk in a different way. Many have put in place thick walls to protect themselves. But firms cannot be protected at all times from a cyber-related incident. So putting in place structures, technologies and processes to ensure resilience—or fast recovery—is as much or more important than simply putting more locks on the doors or building stronger walls. See for more.

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How to Make Your Enterprise Cyber Resilient

  1. 1. How to make your enterprise cyber resilient
  2. 2. Copyright © 2015 Accenture All rights reserved. 2Copyright © 2015 Accenture All rights reserved. 2 For more information, please visit: According to respondents from the 2015 Global Risk Research Study Cyber Risks are set to rise and are high priority on the CRO agenda 74% of insurance respondents expect cyber and IT risks to become more severe 65% of Banking respondents expect cyber risk to become more severe 58% of capital markets respondents expect an increase in the severity of cyber risks Cyber & IT Security Risk in Financial Services
  3. 3. Copyright © 2015 Accenture All rights reserved. 3 What is Cyber Risk? Cyber Risk Reputational Risk • Loss of Trust (internal and external) • Brand Damage / Loss of Intangible Value • Time intensive / costly to repair • Need to embrace Digital Technology and Operational Risk • Failure of infrastructure, processes or systems • Inability to operate/Run the business • Requires regular planning and oversight • Importance of effective and current controls Fraud and Financial Crime • Lost revenue and profit – high cost • High velocity and high frequency/relentless • Need to stay close to regulatory agenda • Requires both business and technology solutions Sources of Cyber Risk • Hacktivism • Hacker / Lone Wolf • Nation State Attacks • Insider Data Leakage • Social Engineering Internal Origins of Cyber Risk • Digital Banking Services • Payments • Electronic Trading • Third Parties • Technology Infrastructure Cyber Risk can manifest itself across several dimensions, making it difficult to detect, measure, and control
  4. 4. Copyright © 2015 Accenture All rights reserved. 4 Protecting Against the Cyber Threat is not a New Problem • Linear or horizontal approach is not working • Large Institutions lack the facts and processes • Challenge to understand what information needs to be protected and the most effective set of defense mechanisms • Companies that spend more on cyber resiliency do not necessarily manage cyber resilience risk in a more mature way Cyber resilience is a continual challenge due to the exponential rate at which people, processes and organization are connected digitally Historical Methods • It’s not possible to isolate the risk • Cyber risk does not respect your organizational structure • It’s not just a technology problem, but rather a technology, process and people problem • Firm that invest in and develop cyber capabilities to instill trust will have an competitive edge in the digital era New Paradigm
  5. 5. Copyright © 2015 Accenture All rights reserved. 5 Resilience • Downtime/Loss of service • Theft/Fraud • Loss of data • Impact to reputation/brand The ability to operate the business processes in normal and adverse scenarios without adverse outcomes • Secure processes and systems • Strong controls • A strong risk culture • Digitized/Automated processes Resilient businesses have: Resilience Prevents:
  6. 6. Copyright © 2015 Accenture All rights reserved. 6 A Comprehensive Approach helps Protect the Full Breadth of Entry Points and Operations which Underpin Financial Services Organizations Detect IdentifyRespond Prevent Detection and Identification – Tools and metrics to identify and log aspects to manage operations Operational Monitoring – Aligning the tools to identify and detect threats along with their escalation and oversight Event Response Plan – Structure to identify and manage action plans Business and IT Controls – Oversight of the controls and their testing programs and how to leverage COBIT®, ISA, ISO/IEC, NIST* controls Operating Model – Specifying the structure with people, organization, roles, tools and processes to govern. Crisis Management – Structure to manage incidents and notify impacted parties Risk Events - Scenarios which can impact the organization specific to Cyber threats Risk Identification – Aggregated set of typical risk associated with Cyber Risk How do we respond? What is the impact? How do we organize? How do we monitor?
  7. 7. Copyright © 2015 Accenture All rights reserved. 7 Measurement with a Purpose Observations and Hypotheses • Customers • Employees • Partner/Third Parties • Business Process • Support Process • Other Process • Software • Configurations • Access Management 1. Without the right metrics, Cyber Risk could become diluted and mis- aligned to business value 2. Historical key performance indicators (KPIs) may not provide insights 3. Board-level reporting has no clear standards and could be out of sync with the real threats 4. Techniques to model the scenarios, risk events and residual risk across the firm are not focused on cyber threats Process Technology People
  8. 8. Copyright © 2015 Accenture All rights reserved. 8 Measurement with a Purpose Common categories to consider for Cyber Risk Reporting 1. Board-Level Reporting 2. IT Risks 3. Operational 4. Advanced Analytics Infrastructure Third Parties SoftwareInternal Employee Training Data Loss Prevention Employee Monitoring External Vulnerabilities Surveillance Funding Risk/Reward Decisions IT Operations Fraud Target Residual Risk Access Management Physical SecurityHigh Crimes and Investigation New FocusRenewed focus
  9. 9. Copyright © 2015 Accenture All rights reserved. 9 Embed the first line of defense within technology organization. Create a centralized office with technology control officers across business lines which just focus upon IT. Cyber Risk Operating Models An operating model helps define the organization’s accountability for doing the work, supporting the right decisions and measure effectiveness Centralize an entire department as 2nd line of defense with examinations across the lines of business. Build highly specialized team and track similar to compliance function. Policy setting organization and influencer similar to data and privacy. Develop risk frameworks around IT, Data integrity, and operations and run as 2nd line of defense. Create an enterprise-wide risk function dedicated to identify, measure and respond to threats. Option 1 – Dedicated Function Option 0 – IT Centric Option 2 – Cyber Czar Option 3 – Risk Led
  10. 10. Copyright © 2015 Accenture All rights reserved. 10 Operating Model Analysis Each option should consider the tradeoffs with the firm’s ability to Prevent and Detect Threats Efficiency Ability to Prevent and Detect Threats Low High High Option 0 – IT Centric Option 1 – Dedicated Function Option 2 – Cyber Czar Option 3 – Risk Led
  11. 11. Copyright © 2015 Accenture All rights reserved. 11 Operating Model Analysis Each option should consider the tradeoffs with the firm’s ability to Prevent and Detect Threats Ability to Prevent and Detect Threats Low High High ValuetoCustomer Option 0 – IT Centric Option 1 – Dedicated Function Option 2 – Cyber Czar Option 3 – Risk Led
  12. 12. Copyright © 2015 Accenture All rights reserved. 12 Operating Model Analysis Each option should consider the tradeoffs with the firm’s ability to Prevent and Detect Threats Ability to Prevent and Detect Threats Low High High SpeedtoExecute Option 0 – IT Centric Option 1 – Dedicated Function Option 2 – Cyber Czar Option 3 – Risk Led
  13. 13. Copyright © 2015 Accenture All rights reserved. 13 1. Training and Risk Culture – Taking your unique organization and infusing the right cyber risk behaviors 2. Controls – Where are the weak points – build robust set of controls across operations, business and IT 3. Measurement with a Purpose – What is going on without you knowing it – creating metrics which help expose the risks 4. Operating Model – How do you work with the rest of the organization - assigning clear lines of accountability and ownership 5. Resilience – At some point it will go wrong, how do you get the best outcome from the worst situation? The Top 5 Priorities to Get Right Cyber Risk does not fit neatly into a single organization node to then be managed and mitigated effectively
  14. 14. Copyright © 2015 Accenture All rights reserved. 14 A risk-based approach helps to set priorities, establish a risk appetite (and a budget) and bring order and priority in place of reaction Holistic Capabilities to help Deliver Resilient Solutions More institutions are focusing on a better way to address the challenges of cyber risk, but few have mastered it Establish effective controls for people, process and technology to facilitate effective surveillance and improved incident response to deliver resilient solutions
  15. 15. Glossary COBIT: Control Objectives for Information and Related Technology. COBIT® is a trademark of ISACA® registered in the United States and other countries. ISA: Information Society of Automation ISO: International Organization for Standardization IEC: International Electrotechnical Commission NIST: National Institute of Standards and Technology
  16. 16. How to Make your Enterprise Cyber Resilient Disclaimer: This presentation is intended for general informational purposes only and does not take into account the reader’s specific circumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals. About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 358,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$31.0 billion for the fiscal year ended Aug. 31, 2015. Its home page is Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  17. 17. Learn more about cyber risk and resilience: