The Best Time to Implement New Security Plans
June 3, 2002
By Michael Bruck
Q: My system hasn't
been hacked yet, but I think the risk is low. How safe am I really?
A: When is enough,
enough? Every day, businesses and organizations learn more about the importance
of information security, yet many still procrastinate implementing an action
plan. Many times, an action plan is put into place after the company or
organization experiences a hacking or receives a virus. Why wait? How much does
an organization need to hear or experience before the proper security measures
are put in place? Do you buy insurance on your property after damage?
Earlier this year, the Los Angeles Times reported that U.S.
intelligence officials believe the Chinese military is working to launch
widespread attacks on American and Taiwanese computer networks. The report went
on to say that independent Chinese hackers might be stepping up their attacks on
U.S. networks in the near future. The attacks would include common hacks such as
defacing Web sites, virus attacks and the "flooding" of computer systems by
overloading them with transmissions. Some of these are known as denial of
service attacks, which affected Yahoo!, eBay and Datek last year and the year
before. But the real questions are: Will your systems be affected? Do you have
the proper security in place?
Most of the time, opportunity cost is the primary cost component of
justification. At a basic level, entrepreneurs may lose sales. Also, revenues
could be significantly impacted with just one security breach--not only the
instantaneous revenues, but also the loss of confidence by your customers in the
security and systems you've set up to serve them.
The costs associated with security breaches can add up quickly, according to
Computer Economics. The research firm's estimates for costs associated with the
Code Red Virus alone were more than $2 billion in downtime and repairs. And
Information Week Research reported that the cost of security-related downtime to
U.S. businesses in the 12 months before September 11 was estimated at $273
million. Worldwide, the approximation is an extraordinary $1.39 trillion.
The question at hand in justification then becomes, what is the cost when an
intruder hacks a Web site or has access to private and insecure data? Then there
are related costs: the help desk calls when there's a problem, emergency
services and so on. When a system goes down, calculate the number of minutes
times the number of people not available, and the costs go sky-high. Ask a
security manager his estimate of these costs, and security measures will be
justified even more.
Many entrepreneurs often cite lack of time, capital outlay, the cost of
hiring and the need for training as financial challenges related to security
management. Up-to-date technology, expertise and solutions are also issues.
These limited internal resources are often the factors that justify third-party
participation to manage information security within a company.
It's a costly struggle to have internal staffers monitoring the various
detection systems, firewalls and other security programs that are in place, and
this isn't even in real time. This is true especially in entrepreneurial
companies where staff headcount is low to begin with. For some entrepreneurs,
the costs involved aren't just a matter of cost-effectiveness, they're a matter
of true survival.
Security can be a hard sell, and it's rarely a black-and-white
justification--especially in today's world of budget cuts. But the answer sure
gets easier when evaluating the costs of just one security breach.
So what steps should you take now before your system is breached? Evaluate
and choose a managed security services provider that will:
Perform an information security audit of all your information and IT
systems.
Investigate what security options are necessary for protection.
Compare the costs to what a security breach would cost you.
Implement accordingly as if it was just another insurance policy.
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