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vantage<br />

Special<br />

INsIghts oN the busINess of securIty<br />

<strong>RSA</strong><br />

Conference<br />

edition<br />

<strong>Security</strong><br />

that enables<br />

<strong>innovation</strong><br />

Aligning investments<br />

to accelerate<br />

business goals<br />

Volume 5 | Number 2 | 2008<br />

also inside<br />

<strong>RSA</strong> Conference ’08 — a closer look<br />

Information risk management<br />

Update on the US strategy<br />

to secure cyberspace


opening notes<br />

Risk: Fear or Embrace?<br />

Risk is one of those things we as security<br />

professionals are supposed to avoid at all<br />

costs. Some would argue that our whole raison<br />

d’être is to keep the business as far removed<br />

from risk as possible — and make sure that the<br />

companies we serve do not achieve infamy in<br />

the Wall Street Journal.<br />

Today’s business leaders know,<br />

however, that perhaps the greatest<br />

risk of all is to take no risks. In fact,<br />

when the Boston Consulting Group<br />

surveyed 940 senior executives<br />

around the world on this topic, they<br />

agreed that increasing top line revenues<br />

through <strong>innovation</strong> has become<br />

essential to success in their industry.<br />

Innovations such as outsourcing, offshoring,<br />

M&A, supply chain and new<br />

customer service models all require<br />

inherent degrees of risk that need to<br />

be evaluated, mapped and addressed<br />

ahead of time, lest those risks undermine<br />

the success of a program.<br />

Spurred by the number of threats<br />

we face today and the huge burden<br />

of regulatory requirements, the commonly<br />

held view is that the goals of<br />

security and risk management are in<br />

direct conflict with many of these critical<br />

initiatives, and, more generally,<br />

with moves to grow the business and<br />

enhance the ability to compete. Innovation,<br />

in particular, is at risk from<br />

— well, risk.<br />

But there is another side to this:<br />

Where risk lies there also lies opportunity.<br />

Forward-looking CEOs, CIOs<br />

and CISOs with an eye on first-mover<br />

advantage in the market are seeking<br />

the means to safely embrace risk, to<br />

run with it, to tap it to full advantage.<br />

<strong>Security</strong> can provide that means.<br />

When risk is managed and mitigated<br />

Vol. 5, No. 1, 2008 <strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine<br />

correctly, it becomes a unique enabler<br />

for <strong>innovation</strong> and other, dynamic<br />

new business behaviors. Starting on<br />

page 8, you can read more about our<br />

evolving understanding of information<br />

risk and <strong>RSA</strong>/EMC’s strategy for<br />

transforming information security<br />

from a business inhibitor to a force<br />

that accelerates <strong>innovation</strong>.<br />

In addition, you will find the following<br />

articles in this <strong>RSA</strong> Conference<br />

issue of Vantage:<br />

• A look at <strong>RSA</strong> Conference 2008<br />

and the must-see events at the show.<br />

• Five years after the National<br />

Strategy for Securing Cyber Space was<br />

created, we review security issues in<br />

the context of an election year.<br />

• A look at how Germany’s innovative<br />

quirin bank is implementing<br />

strong security for its customers.<br />

Sincerely,<br />

Arthur W. Coviello, Jr.<br />

President — <strong>RSA</strong>,<br />

The <strong>Security</strong> Division of EMC<br />

vantage<br />

program team<br />

<strong>RSA</strong> Editor<br />

PAUL JOYAL<br />

Contributing Editors<br />

MATT BUCKLEY<br />

BriTTA GLAdE<br />

editorial team<br />

Managing Editors<br />

ChrisTinE KAnE<br />

AndrEA E. sTiLL<br />

Design Director<br />

rOnn CAMPisi<br />

Contributing Writers<br />

sArAh JEnsEn<br />

ChrisTinE KAnE<br />

nAnCY LAnGMEYEr<br />

JAsOn M. rUBin<br />

Editorial content for Vantage<br />

is developed and managed by:<br />

Libretto<br />

560 Harrison Avenue, Suite 501<br />

Boston, MA 02118<br />

617.451.5113<br />

www.libretto-inc.com<br />

©2008 <strong>RSA</strong> <strong>Security</strong> Inc.<br />

All Rights Reserved<br />

<strong>RSA</strong>, SecurID, Key Manager and File <strong>Security</strong><br />

Manager are either registered trademarks or<br />

trademarks of <strong>RSA</strong> <strong>Security</strong> Inc. in the United<br />

States and/or other countries. EMC is a registered<br />

trademark of EMC Corporation. All other<br />

products or services mentioned are trademarks<br />

of their respective companies.<br />

To subscribe to Vantage magazine,<br />

please go to<br />

www.rsa.com/go/vantage<br />

Postmaster: If undeliverable, notify<br />

<strong>RSA</strong> Marketing, 174 Middlesex Turnpike,<br />

Mail Stop 32A080, Bedford, MA 01730<br />

www.rsa.com<br />

Cover illustration by Marc Rosenthal


in this issue<br />

F E A T U R E S<br />

4 rsA ® Conference 2008<br />

A preview of the security industry’s premier<br />

event, including “5 hot tickets.”<br />

8 From brakes to breakthroughs<br />

Information security is evolving from its<br />

purely defensive role to the more strategic<br />

role of enabling <strong>innovation</strong> and growth.<br />

1 Banking on security<br />

Europe’s quirin bank deploys <strong>RSA</strong><br />

SecurID® protection to ensure a high level<br />

of security for online banking.<br />

14 information risk management<br />

<strong>RSA</strong> offers a holistic approach to security<br />

based on the well-established discipline of<br />

risk management.<br />

18 Progress report on cybersecurity<br />

Five years after the release of the<br />

National Strategy to Secure Cyberspace,<br />

two experts weigh in on progress to date.<br />

D E P A R T M E N T S<br />

Opening notes<br />

By Art Coviello, Jr.<br />

6 Partner Profile<br />

The close, three-way partnership of <strong>RSA</strong>,<br />

EMC and Cisco is a win-win-win for their<br />

joint customers.<br />

inside rsA Labs<br />

Wouldn’t it be nice if you could securely<br />

log on to your PC as easily as you unlock<br />

your car door? WARP technology offers<br />

one possible approach.<br />

coming up<br />

EMC World, the ultimate forum for<br />

EMC customers, partners and industry<br />

watchers, will take place MAY 19– in<br />

LAs VEGAs. Attendees will have access<br />

to EMC’s portfolio of solutions and<br />

services. This year’s event will feature<br />

rsA ® Xchange, where technical end<br />

users can learn from <strong>RSA</strong> product<br />

experts and engineering teams. For<br />

more information and to register,<br />

visit www.emcworld2008.com. For<br />

information on <strong>RSA</strong> Xchange, visit<br />

www.rsaxchange.com.<br />

8<br />

5<br />

22<br />

18<br />

12<br />

6<br />

<strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine Vol. 5, No. 1, 2008


at a glance april 7-11, san francisco<br />

rsa® conference 2008<br />

Entertaining, educational and thought-provoking, the<br />

annual <strong>RSA</strong> ® Conference is the place to learn about new<br />

information security trends and technologies, hear the<br />

experts debate hot topics and controversial issues, and<br />

connect or reconnect with colleagues. Whether you<br />

are attending or not, you can be part of the Conference<br />

experience – live or via the Web – even after it’s all over.<br />

For attendees,<br />

5 hot tickets<br />

There’s so much to see, hear and<br />

do at the <strong>RSA</strong> Conference, it’s wise<br />

to plan ahead. Here are five<br />

can’t-miss events.<br />

ThE ArT OF sECUriTY: rsA Presi-<br />

1 dent Art Coviello will kick off the<br />

event by discussing the role of security<br />

in business <strong>innovation</strong>. Be there<br />

Tuesday at 8 a.m. sharp!<br />

2<br />

PUT This in YOUr PdA: On<br />

Wednesday, Jeff hawkins —<br />

co-founder of Palm and handspring<br />

— will discuss his research on human<br />

intelligence and plans for developing<br />

machines with smarts.<br />

3<br />

dOn’T BLinK! or you might miss<br />

Thursday’s talk by Malcolm<br />

Gladwell, best-selling author of Blink:<br />

The Power of Thinking Without Thinking<br />

and The Tipping Point: How Little<br />

Things Make a Big Difference.<br />

4<br />

sECUriTY sMACKdOWn: Face off<br />

against other attendees as you<br />

test your knowledge and hunt for website<br />

vulnerabilities.<br />

5<br />

BEhOLd ThE BLOGErATi: The<br />

security Bloggers Meet-Up is by<br />

invitation only, with more than 60<br />

bloggers expected to participate. For<br />

everyone else, there will be live podcasting,<br />

video streaming and Twitter<br />

feeds from the event.<br />

4 Vol. 5, No. 1, 2008 <strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine<br />

Keynote Speaker<br />

ART COVIELLO<br />

rsA President<br />

As hE hAs in past years, Art Coviello will kick off the Conference with a<br />

keynote presentation. Asked to set the stage for his keynote, Art shared<br />

this thought:<br />

“When information security is viewed merely as a defensive strategy,<br />

it becomes a barrier to <strong>innovation</strong>. The key to enabling <strong>innovation</strong> is to<br />

become innovative about mitigating risk. As security leaders, we need<br />

to develop overarching and holistic security strategies that align with<br />

business goals and appropriately balance risk and reward. It’s a strategy<br />

that Burton refers to as risk optimization and it requires a change in<br />

mindset and behavior. During my keynote I’ll share the recommendations<br />

of 10 Fortune 500 CISOs on how to build information security programs<br />

that enable business <strong>innovation</strong>.”<br />

CAN’T ATTEND THE <strong>RSA</strong> CONFERENCE?<br />

Stay up to date on<br />

industry news, product<br />

launches, keynote<br />

addresses and panel<br />

discussions. Visit<br />

www.rsaconference.<br />

com/2008/US/home.aspx<br />

for live blogs, webcasts<br />

and podcasts of the<br />

April event, as well as<br />

rebroadcasts from past<br />

gatherings.


Sandra Toms LaPedis<br />

Area Vice President & General<br />

Manager, <strong>RSA</strong> Conference<br />

Noting that conference planners<br />

strive to “raise the bar” on the<br />

conference experience every year,<br />

LaPedis discussed key changes<br />

that will be reflected in this year’s<br />

event.<br />

“The <strong>RSA</strong> Conference content<br />

is ever expanding — reflecting attendee<br />

diversity and the expansive<br />

nature of the issues attendees are<br />

tackling. We’ve added a new class<br />

track, called Research Revealed,<br />

covering recent cutting—edge research<br />

on security vulnerabilities.<br />

We expanded the number of highly<br />

technical and in-depth sessions.<br />

And we continue to embrace Web<br />

2.0 tools on www.rsaconference.<br />

com to create a year-round resource<br />

and make content more<br />

accessible — not just for attendees<br />

but the whole industry.”<br />

emily nathan<br />

jen siska<br />

Keynote Speaker<br />

JIM BIDZOS<br />

Chairman of the Board,<br />

Verisign<br />

in 1999, Time<br />

magazine named<br />

Jim Bidzos to the<br />

“Digital 500,” citing<br />

his role in spurring<br />

adoption of public<br />

key cryptography.<br />

As a leadup to his<br />

keynote, Bidzos<br />

offered these<br />

thoughts to Vantage.<br />

“I’m often<br />

asked how it is<br />

that Internet use<br />

continues to grow<br />

so fast despite even<br />

faster-growing<br />

vulnerabilities<br />

— security breaches,<br />

stolen data, identity<br />

theft, online fraud<br />

and more. The<br />

short answer is<br />

that online security<br />

is ‘good enough’<br />

— adequate for the<br />

risk represented<br />

by the value of<br />

the transactions.<br />

Consider credit<br />

cards — there is<br />

certainly theft and<br />

fraud. But various<br />

security measures —<br />

added over time to<br />

address new threats<br />

— kept losses at an<br />

acceptable level.<br />

Computer and<br />

online security seem<br />

to be following a<br />

similar path: The<br />

operating systems<br />

and browsers<br />

get new security<br />

features, patches<br />

and updates, often<br />

in response to some<br />

recently discovered<br />

or exploited<br />

vulnerability.<br />

We’ve long<br />

been saying<br />

that this cycle<br />

of vulnerability<br />

exploitation and<br />

patch will never<br />

really end, and<br />

everything we’ve<br />

seen to date only<br />

reinforces this<br />

belief. And the<br />

complexity of all<br />

those patches adds<br />

more vulnerabilities.<br />

But what if<br />

the patch efforts<br />

fall behind? What<br />

happens when<br />

“good enough” just<br />

isn’t good enough<br />

anymore? One could<br />

argue that identity<br />

theft is on the<br />

verge of becoming<br />

the manifestation<br />

of this risk; many<br />

will be surprised<br />

to learn that in<br />

2006, most identity<br />

theft was enabled<br />

by non-Internet<br />

data collection.<br />

Online exploitation<br />

on a grand scale<br />

might cause<br />

an exponential<br />

increase in what is<br />

already one of the<br />

fastest-growing<br />

consumer threats in<br />

the U.S.<br />

It will take a new<br />

way of thinking<br />

about security, and<br />

new offerings that<br />

can isolate and close<br />

off broad categories<br />

of threat, so that<br />

“good enough” is<br />

still good enough<br />

when the stakes go<br />

up.<br />

We have some<br />

ideas, and we’re<br />

doing more than<br />

just thinking about<br />

them.”<br />

<strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine Vol. 5, No. 1, 2008


When Bob Gleichauf thinks about the partnership<br />

among Cisco<br />

Systems, EMC and<br />

<strong>RSA</strong>, the <strong>Security</strong><br />

Division of EMC,<br />

and how this<br />

triumvirate can<br />

serve their mutual<br />

customers, he says<br />

in his relaxed,<br />

humorous manner,<br />

“The propeller<br />

on my head starts<br />

to whirl.”<br />

Gleichauf, CTO of Enterprise Services<br />

and <strong>Security</strong> at Cisco Systems,<br />

adds, “As companies with great complementary<br />

technologies, we work together<br />

in exciting ways to provide collaborative<br />

solutions that help our customers with<br />

their end-to-end security challenges.”<br />

Gleichauf describes this threepronged<br />

partnership as trusted vendors<br />

working together to provide a number of<br />

security solutions from storage, through<br />

the servers, into the data center cloud,<br />

and then across the campus. “EMC is a<br />

great partner for storage and security<br />

encryption products and Cisco has a<br />

range of products crossing the enterprise,<br />

from the server to data in transit to<br />

firewalls and e-mail application-level security,”<br />

says Gleichauf. “<strong>RSA</strong> has a ‘bestof-breed’<br />

offering in the identity access<br />

and key management space that fits well<br />

with Cisco’s own market-leading VPN,<br />

storage encryption, NAC and TrustSec<br />

offerings.”<br />

Add in the data loss prevention that<br />

<strong>RSA</strong> brings to the table with the acquisition<br />

of Tablus and the rich security and<br />

policy enforcement capabilities in Cisco’s<br />

<strong>Security</strong> Agent product, says Gleichauf,<br />

and it’s a huge win for customers.<br />

<strong>RSA</strong>’s CTO, Bret Hartman, agrees,<br />

adding that there is a natural synergy<br />

among the three companies. “It’s all<br />

about securing data at rest and in motion<br />

and that’s where our core competencies<br />

are,” says Hartman. “Very few other<br />

vendors can address enterprise security<br />

requirements like we can.”<br />

6 Vol. 5, No. 1, 2008<br />

By Nancy Langmeyer<br />

partner profile<br />

The power of three<br />

When Cisco, EMC and <strong>RSA</strong> join together,<br />

it’s win-win-win for customers


BOB GLEICHAUF cautions<br />

customers against trying to meet<br />

compliance regulations on their<br />

own, noting that attempts in one<br />

area may unintentionally create<br />

problems in another.<br />

Photograph by Mark Ostow<br />

A nEW APPrOACh TO sECUriTY<br />

According to Gleichauf, the business<br />

drivers for security are changing and<br />

that means the way Cisco, EMC and <strong>RSA</strong><br />

work together is changing as well. “For<br />

the longest time, businesses focused on<br />

threat defense, meaning keeping the bad<br />

stuff, like worms and viruses, out,” he<br />

says. “Today, our industry has evolved to<br />

information protection, where keeping<br />

good things in is as important.”<br />

As preferred vendors in the security<br />

industry, Cisco, EMC and <strong>RSA</strong> are<br />

perfectly aligned to help customers<br />

protect their information, Gleichauf<br />

says. “When we combine Cisco’s<br />

policy enforcement and infrastructure<br />

controls with <strong>RSA</strong>’s identity and access<br />

management tools (identifying who you<br />

are, where you can and can’t go, and what<br />

you can access) and EMC’s storage tools,<br />

the result is one of the strongest, most<br />

viable information protection solutions<br />

available today.”<br />

Hartman explains, “It’s all about<br />

protecting the information directly,<br />

whether it’s at rest or traveling across<br />

the network.” Hartman cites a recent<br />

example where Cisco and <strong>RSA</strong> teamed<br />

to provide encryption for data-at-rest<br />

through the integration of Cisco’s Storage<br />

Media Encryption with the <strong>RSA</strong> Key<br />

Manager solution, a joint venture that<br />

Hartman says “is a way of helping protect<br />

data wherever it lives.”<br />

ThE ChALLEnGE OF COMPLiAnCE<br />

Gleichauf and Hartman feel the partnership<br />

is particularly strong when helping<br />

customers with regulatory compliance,<br />

one of today’s biggest security drivers.<br />

“Businesses recognize that security poses<br />

a systems problem, especially in relation<br />

to compliance,” says Gleichauf. “They’re<br />

trying to figure out how to allow visibility<br />

while at the same time keep data secure<br />

from prying eyes and comply with a wide<br />

variety of regulations.”<br />

Hartman adds that compliance is never<br />

going to be addressed by a single product.<br />

“It’s got to be a system-wide solution,<br />

addressed end-to-end,” he says.<br />

The issues become obvious once an<br />

auditor comes in, because a business<br />

is either compliant — or it’s not. “We<br />

absolutely understand the audit problems<br />

that arise from regulations such as<br />

Sarbanes-Oxley and HIPAA,” says<br />

Gleichauf. “We can help in an operational<br />

way that is workable for the customer.”<br />

Workable solutions may come from<br />

products and services already in the<br />

portfolios of these three vendors, or via<br />

a joint solution, such as the one Cisco<br />

and <strong>RSA</strong> recently developed for the retail<br />

sector. Cisco integrated several <strong>RSA</strong><br />

products, including <strong>RSA</strong> Key Manager<br />

and <strong>RSA</strong> File <strong>Security</strong> Manager, in its<br />

Validated Network Designs to help retailers<br />

meet the Payment Card Industry Data<br />

<strong>Security</strong> Standard and simplify the protection<br />

of sensitive information.<br />

dOn’T GO iT ALOnE<br />

Gleichauf cautions customers about trying<br />

to meet compliance regulations on<br />

their own. “Bret and I often see customers<br />

attempt to meet regulatory requirements<br />

in one business area and then unintentionally<br />

create problems in another,”<br />

he says, adding that Cisco, EMC and <strong>RSA</strong><br />

can help customers avoid such accidents.<br />

“Sometimes it’s as simple as asking<br />

the customer to gather the people from<br />

their data center, network, server, applications<br />

and security together in one<br />

meeting,” says Gleichauf. “They start exchanging<br />

business cards because they’ve<br />

never met.” By virtue of Cisco, EMC and<br />

<strong>RSA</strong> coming in and and asking questions<br />

about how things work end-to-end, suddenly<br />

they look at one another and understand.<br />

“Each of these constituencies<br />

most likely is responsible for different<br />

compliance needs,” says Hartman.<br />

“When we get the key players together,<br />

we help them boil the requirements<br />

down to common elements that can be<br />

solved one time.” The result, he says, is<br />

a much more productive, cost-effective<br />

and collaborative engagement.<br />

A Win-Win-Win<br />

“As vendors committed to working<br />

together,” says Gleichauf, “Cisco,<br />

EMC and <strong>RSA</strong> continually strive to<br />

understand our customers’ problems<br />

and align our products and services in a<br />

way that results in holistic end-to-end<br />

solutions.” Hartman adds, “It’s about<br />

listening to customers and connecting<br />

the dots — when we do that, it’s a win for<br />

everyone.” i<br />

<strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine Vol. 5, No. 1, 2008


Transforming the role of information<br />

security in business <strong>innovation</strong><br />

By Kathleen Bowden<br />

cover story<br />

brakes to<br />

breakthroughs<br />

As a broader definition of<br />

business <strong>innovation</strong> takes<br />

hold in the executive<br />

suite, the longstanding<br />

friction between<br />

information security and<br />

business <strong>innovation</strong> has<br />

become an increasing<br />

liability. Within this<br />

landscape, security teams<br />

are working hard to<br />

transform security from<br />

a potential <strong>innovation</strong><br />

barrier to a recognized<br />

<strong>innovation</strong> enabler.<br />

And the world’s most<br />

forward-looking security<br />

leaders see themselves as<br />

partners in the business<br />

<strong>innovation</strong> process<br />

who anticipate where<br />

their organizations are<br />

headed, and deliver<br />

security strategies that<br />

accelerate the journey.<br />

8 Vol. 5, No. 1, 2008 <strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine<br />

From


sECUriTY<br />

is BEinG<br />

TrAnsFOrMEd<br />

FrOM An<br />

innOVATiOn<br />

BArriEr TO An<br />

innOVATiOn<br />

EnABLEr.<br />

nAViGATinG ThE innOVATiOn GrAY ZOnE<br />

While few people would argue that<br />

<strong>innovation</strong> is a critical core competency<br />

of any 21st-century company, many would<br />

vigorously debate the true meaning of<br />

<strong>innovation</strong>. As Scott Berkun, author of<br />

the 2007 book The Myths of Innovation<br />

notes, “What’s interesting is that nobody<br />

seems to agree on an exact definition of<br />

<strong>innovation</strong>.”<br />

Given the importance of <strong>innovation</strong><br />

to most companies, it’s striking that<br />

its definition still morphs dramatically<br />

depending on who is describing it.<br />

In spite of this undeniable gray<br />

area, in recent years, a broader and<br />

more consistent definition of business<br />

<strong>innovation</strong> has emerged in the executive<br />

suite. It is clear that more and more<br />

companies are viewing <strong>innovation</strong> as an<br />

enterprise strategy that positions them to<br />

enter new markets, launch new products<br />

or services, create new business models,<br />

establish new channels and partnerships<br />

or achieve operational transformation.<br />

ThE BUsinEss innOVATiOn BUCK<br />

sTOPs AT ThE TOP<br />

Industry research shows that more<br />

than ever, <strong>innovation</strong> is a top leadership<br />

concern. Increasingly, CEOs see<br />

themselves as owning <strong>innovation</strong> in<br />

their companies, and believe they must<br />

innovate to compete.<br />

In IBM’s 2006 <strong>innovation</strong> study, many<br />

of the 765 CEOs queried described a<br />

persistent push toward a more expansive<br />

view of <strong>innovation</strong> — a greater mix<br />

of <strong>innovation</strong> types, more external<br />

involvement and extensive demands on<br />

CEOs to bring it to fruition. Similarly,<br />

940 senior executives from around the<br />

world told the Boston Consulting Group<br />

(BCG) that increasing top-line revenues<br />

through <strong>innovation</strong> has become essential<br />

to success in their industry. The same<br />

BCG survey showed that more than half<br />

the execs were dissatisfied with the<br />

financial returns on their investments<br />

in <strong>innovation</strong>. And as more executives<br />

Illustrations by Marc Rosenthal<br />

look for ways to improve their <strong>innovation</strong><br />

returns, information security is an<br />

escalating area of concern.<br />

sECUriTY And innOVATiOn:<br />

A TrOUBLEd rELATiOnshiP<br />

Unfortunately, in many organizations,<br />

the security function is still viewed as<br />

a necessary evil. In part this is because<br />

security teams are so committed to<br />

mitigating risk; their efforts often seem<br />

to constrain business-building behavior<br />

rather than encourage it. Too often,<br />

security practitioners are perceived as the<br />

people who say, “Nice idea, but it can’t be<br />

done.”<br />

Although well-intentioned, many<br />

information security teams are not seen<br />

as <strong>innovation</strong> enablers, but as <strong>innovation</strong><br />

obstacles.<br />

The truth is that corporate leaders<br />

are not looking for the best security<br />

solution — they are looking for the best<br />

business solution. And because they are<br />

under increasing pressure to generate<br />

breakthrough <strong>innovation</strong>s, executives<br />

are increasingly frustrated when their<br />

security teams don’t seem to “get it.”<br />

While this conflict has been simmering<br />

under the surface for many years, in many<br />

corporations it has reached a boiling<br />

point. Why now? In short, this friction is<br />

increasing because security now directly<br />

impacts the success or failure of many top<br />

business <strong>innovation</strong> drivers including:<br />

1<br />

OUTsOUrCinG/OFFshOrinG: In<br />

growing numbers, businesses are<br />

turning to low-cost sourcing and<br />

talent models to innovate how they deliver<br />

their services. This means that every day,<br />

more organizations need to securely share<br />

their intellectual property, technologies<br />

and infrastructure with third-party partners<br />

around the globe.<br />

2<br />

sUPPLY-ChAin innOVATiOn: The<br />

trend towards mass customization<br />

requires a more flexible, modern,<br />

global supply chain than ever before. Cor-<br />

<strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine Vol. 5, No. 1, 2008 9


cover story<br />

porate efforts to drive supply chain <strong>innovation</strong> are<br />

generating demand for equivalent <strong>innovation</strong>s in<br />

supply-chain security.<br />

3<br />

nEW JOinT VEnTUrEs, MErGErs & ACqUisi-<br />

TiOns: Businesses continue to strive to bring<br />

new business models, lines of business and<br />

skill sets to the table through the aggressive pursuit<br />

of joint ventures, mergers and acquisitions. To<br />

achieve success, these ventures require security<br />

strategies that maximize organizational synergies<br />

and mitigate risks.<br />

4<br />

CUsTOMEr sELF-sErViCE MOdELs: Capable of<br />

simultaneously reducing costs while increasing<br />

customer satisfaction, self-service models<br />

allow customers to drive their own transactions and<br />

A conversation about <strong>innovation</strong><br />

Members of the <strong>Security</strong> for Business Innovation Council<br />

will take part in an ongoing dialogue about the role of information<br />

security vs. IT security in driving business growth.<br />

Anish BhiMAni Managing<br />

Director, IT Risk Management,<br />

JP Morgan Chase<br />

BiLL BOni Corporate Vice<br />

President and Corporate<br />

Information <strong>Security</strong> Officer,<br />

Motorola<br />

dAVE CULLinAnE Vice<br />

President and Chief<br />

Information <strong>Security</strong> Officer<br />

rOLAnd CLOUTiEr Vice<br />

President, Chief <strong>Security</strong><br />

Officer, EMC Corporation<br />

dr. PAUL dOrEY Enterprise<br />

<strong>Security</strong> & Continuity<br />

Vice President and Chief<br />

Information <strong>Security</strong> Officer,<br />

BP<br />

rEnEE GUTTMAnn Vice<br />

President, Information<br />

<strong>Security</strong> and Privacy Officer,<br />

Time Warner Inc.<br />

dAVid KEnT Vice President,<br />

<strong>Security</strong>, Genzyme<br />

dr. CLAUdiA nATAnsOn<br />

Chief Information <strong>Security</strong><br />

Officer, Diageo<br />

CrAiG shUMArd Chief<br />

Information <strong>Security</strong> Officer,<br />

Cigna Corporation<br />

AndrEAs WUChnEr Head IT<br />

Risk Management, <strong>Security</strong> &<br />

Compliance, Novartis<br />

10 Vol. 5, No. 1, 2008 <strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine<br />

manage their own personal information via the Web.<br />

Successfully capitalizing on this powerful business<br />

strategy requires implicit customer trust, which is<br />

dependent upon a company’s information security<br />

performance.<br />

5<br />

WEB-BAsEd COLLABOrATiOn: In today’s global<br />

economy, companies need their worldwide<br />

internal employees and external partners<br />

to participate in their business with greater ease,<br />

frequency and depth than ever before. This means<br />

companies are continually adding external resources<br />

to their internal business systems, and determining<br />

who to trust and how far to open the door.<br />

6<br />

OPEn innOVATiOn: In the past, companies<br />

cooked up their <strong>innovation</strong>s in an airtight<br />

laboratory and moved them into production<br />

when they were fully baked. Needless to say, those<br />

days are long gone. Innovation in a global marketplace<br />

requires unstructured, multi-disciplined,<br />

multi-organizational collaboration.<br />

7<br />

WOrKFOrCE MOBiLiTY: In spite of the security<br />

risks, the benefits of ubiquitous connectivity,<br />

continuous communications and mobile<br />

access have made workforce mobility a corporate<br />

priority.<br />

It’s clear that each of these key business<br />

<strong>innovation</strong> levers must be supported by a<br />

progressive security strategy. As a result, senior<br />

executives are beginning to realize that information<br />

security is absolutely critical to how effectively their<br />

companies innovate and compete — today and for<br />

years to come.<br />

A siGniFiCAnT BUsinEss COsT<br />

There’s no doubt that the dysfunctional relationship<br />

between security and <strong>innovation</strong> is taking a<br />

significant business toll. In some cases, security<br />

concerns are preventing the realization of important<br />

business goals. In the worst scenarios, business<br />

results fall short of what is achievable because<br />

security worries hold companies back.<br />

On the other end of the spectrum, ignoring<br />

security concerns can produce very bad<br />

risk decisions. Under the pressure of urgent<br />

requirements and ever-diminishing budgets, the<br />

business sometimes fails to engage the security team


WiTh ThE<br />

riGhT<br />

sECUriTY<br />

in PLACE,<br />

innOVATiOn<br />

CAn BLOOM<br />

And<br />

FLOUrish.<br />

or fund the necessary security. Business owners go<br />

to market, quietly assuming the business risk and<br />

hoping nothing happens on their watch.<br />

These decisions have a range of negative<br />

repercussions. They may result in unsatisfactory<br />

audit results after a “go live.” <strong>Security</strong> and<br />

compliance may need to be “bolted on” after the<br />

fact, adding enormous cost and complexity to the<br />

project. And of course, there is the ultimate risk to<br />

corporate reputation. No CEO wants to see their<br />

company’s name in the headlines because customer<br />

data was compromised and shareholder value was<br />

lost.<br />

FindinG A BETTEr WAY<br />

So where do we go from here? Today’s security leaders<br />

agree that companies that innovate with security<br />

in mind will avoid stalled <strong>innovation</strong> processes and<br />

poor <strong>innovation</strong> outcomes.<br />

The 2006 Ernst & Young report “Achieving<br />

Success in a Globalized World” 1 notes: “Our<br />

experience tells us that when companies involve<br />

information security early and substantially in<br />

acquiring or divesting assets, and in other business<br />

initiatives, they dramatically reduce the risks and<br />

tangibly enhance the benefits of strategic changes.”<br />

It seems a simple enough mission: Make security<br />

an essential component of the <strong>innovation</strong> process.<br />

But, making this happen will require the removal of<br />

longstanding roadblocks, and answers to complex<br />

questions including:<br />

• How do you convince business managers<br />

to engage the security team at the start of the<br />

<strong>innovation</strong> process?<br />

• What are the best metrics to show how an action<br />

in security impacts the business’s bottom line?<br />

• How can security leaders inspire their teams to<br />

shift away from saying “I’m afraid the answer is no”<br />

and toward “This is how”?<br />

• How can security teams simplify how they<br />

communicate with business owners and how they<br />

assess security risks?<br />

• What is the best way to learn about innovative<br />

business initiatives on the horizon and proactively<br />

create security strategies that will remove business<br />

inhibitors and accelerate desired outcomes?<br />

At <strong>RSA</strong>, we believe security can be transformed<br />

from a “necessary evil” that stifles <strong>innovation</strong>, to a<br />

1 Source: www.ey.com/Global/download.nsf/International/TSRS_-_GISS_<br />

2006/$file/EY_GISS2006.pdf<br />

business strategy that accelerates it.<br />

We realize we are not alone in our thinking, and<br />

that joining forces with like-minded security leaders<br />

will allow us to drive a more rapid and meaningful<br />

change. With this goal in mind, <strong>RSA</strong> has convened<br />

a team of accomplished security leaders to explore<br />

security’s role in business <strong>innovation</strong> and identify<br />

ways to move the industry forward.<br />

<strong>RSA</strong> is conducting a series of in-depth interviews<br />

with the members of the <strong>Security</strong> for Business<br />

Innovation Council, and as the sponsor of this<br />

industry conversation, will publish a number of<br />

reports based on these discussions. We look forward<br />

to releasing the first of these reports at the April<br />

2008 <strong>RSA</strong> Conference.<br />

In his <strong>RSA</strong> conference keynote speech, “The Role<br />

of <strong>Security</strong> in Business Innovation: From Villain to<br />

Hero,” <strong>RSA</strong> president and CEO Art Coviello will<br />

share findings from the first <strong>Security</strong> for Business<br />

Innovation Council report, and reveal the results of<br />

a new IDC research study on this important topic. In<br />

the meantime, to learn more about the relationship<br />

between security and business <strong>innovation</strong>, please<br />

visit the <strong>RSA</strong> Business Innovation website at www.<br />

rsa.com/<strong>innovation</strong>/. i<br />

<strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine Vol. 5, No. 1, 2008 11


case study<br />

Redefining banking, redefining security<br />

Avant-garde German financier Karl<br />

Matthäus Schmidt deviated from European<br />

banking standards when he chose a<br />

customer-centric approach for his asset<br />

management firm. Schmidt also broke the<br />

norms when it came to online banking<br />

security, as he chose <strong>RSA</strong> SecurID®<br />

two-factor authentication over the<br />

widely accepted PIN/TAN system<br />

used throughout Europe.<br />

1 Vol. 5, No. 1, 2008 <strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine<br />

For a revolutionary European bank with high<br />

standards, traditional online security systems<br />

just weren’t enough. By NaNcy LaNgmeyer


Schmidt first made a name for<br />

himself when he founded the<br />

Consors discount brokerage<br />

firm at age 25, took it public<br />

five years later in 1999, and<br />

then sold it to BNP Paribas<br />

two years after that for half<br />

a billion euros (US$725<br />

million).<br />

Schmidt then founded the<br />

Berlin-based quirin bank, a<br />

specialized asset management<br />

firm for institutional and<br />

private investors, which he<br />

took public in October 2006.<br />

In March 2007, the German<br />

business publication, Manager<br />

Magazin, ranked the quirin<br />

bank second behind the<br />

venerable Deutsche Bank<br />

for the performance of its<br />

investments.<br />

An UnCOMMOn APPrOACh<br />

TO BAnKinG<br />

Today quirin bank manages<br />

assets of €690 million<br />

(US$1 billion) and, as CEO,<br />

Schmidt has a philosophy<br />

quite unlike any other in<br />

Germany: The bank only<br />

makes money if its customers<br />

do. The compensation of<br />

the bank’s financial advisors<br />

depends solely on the value<br />

added to their customers’<br />

investments. Their customers<br />

— ranging from small clients<br />

with modest investments to<br />

wealthy individuals with large<br />

portfolios — pay a flat rate<br />

asset management fee, with<br />

commissions or markups from<br />

their investments credited<br />

to their accounts. With<br />

JKArL MATThäUs sChMidT<br />

founded the ground-breaking<br />

quirin bank, ranked<br />

second behind Deutsche Bank<br />

for asset performance.<br />

Illustration by James Yang<br />

an interest in growing the<br />

customers’ assets, Schmidt’s<br />

simple yet revolutionary<br />

concept is working.<br />

An UnCOMMOn APPrOACh<br />

TO sECUriTY<br />

When quirin bank decided<br />

to offer online banking<br />

capabilities in the spring of<br />

2007, Schmidt decided once<br />

again to be unconventional<br />

and raise the bar for online<br />

security. For Schmidt, the<br />

PIN/TAN system used by<br />

most German banks was not<br />

good enough for his bank. The<br />

PIN/TAN system is prone<br />

to complacency; personal<br />

identification numbers are<br />

often written down, and lists<br />

of one-time-use transaction<br />

authorization numbers are<br />

sent to customers only to be<br />

lost or misplaced. Schmidt<br />

and his colleagues also looked<br />

at high-end customized<br />

security systems, but found<br />

them too cumbersome and<br />

complicated.<br />

BALAnCinG EAsE OF UsE And<br />

“WATErTiGhT” sECUriTY<br />

The bank wanted a solution<br />

that provided both ease of<br />

use and, as the president of<br />

banking operations, Stefan<br />

Spannagl notes, “watertight”<br />

security.<br />

The bank also wanted<br />

a solution that would be<br />

cost-effective, easy to install<br />

and maintain and quickly<br />

implemented. Another<br />

requirement was a solution<br />

that was future-proof,<br />

scalable, and able to meet<br />

the bank’s aggressive growth<br />

plans.<br />

ITREXS, a banking<br />

software and services<br />

provider whose modular<br />

portfolio management<br />

AsTEFAn sPAnnAGL<br />

president of banking operations,<br />

notes that <strong>RSA</strong> SecurID<br />

combines advanced technology<br />

with ease of use.<br />

solution is installed at<br />

quirin bank, came up<br />

with an effective solution:<br />

<strong>RSA</strong> SecurID® two-factor<br />

authentication. ITREXS,<br />

an <strong>RSA</strong> partner which has<br />

integrated <strong>RSA</strong> solutions with<br />

other banking and portfolio<br />

management customers,<br />

assured quirin bank that<br />

integrating an <strong>RSA</strong> two-factor<br />

authentication token with<br />

the bank’s existing customer<br />

front end and their ITREXS<br />

solution could be done easily<br />

and quickly.<br />

MEETinG ThE BAnK’s<br />

hiGh sTAndArds<br />

After testing two-factor<br />

authentication, quirin bank<br />

was quickly convinced.<br />

In mid-2007, ITREXS<br />

customized <strong>RSA</strong> SecurID,<br />

tailoring it to quirin bank’s<br />

exact requirements, including<br />

a SecurID key fob token<br />

branded with the bank’s<br />

logo. ITREXS installed and<br />

implemented <strong>RSA</strong> SecurID<br />

with minimal disruption of<br />

the bank’s operations during<br />

deployment.<br />

With <strong>RSA</strong> two-factor<br />

authentication, quirin bank<br />

customers now can log into<br />

their accounts using a known<br />

entity — their PIN number<br />

— combined with the onetime<br />

token code generated<br />

by their quirin bank key fob.<br />

This provides the high level<br />

of security that Schmidt was<br />

looking for.<br />

<strong>RSA</strong> SecurID has been<br />

fully integrated with the<br />

bank’s Web portal for all<br />

the bank’s customers and<br />

staff, with overwhelmingly<br />

positive feedback. “Not only<br />

is <strong>RSA</strong> SecurID significantly<br />

safer than conventional PIN/<br />

TANs,” says Spannagl, “it also<br />

combines the most advanced<br />

technology use with ease of<br />

use.”<br />

Schmidt sees the solution<br />

as adding value to the bank’s<br />

image. “The quirin bank<br />

offers its customers secure,<br />

innovative online banking,” he<br />

says. “With <strong>RSA</strong> two-factor<br />

authentication, our customers<br />

can conduct their bank<br />

business flexibly and securely<br />

— and with confidence.”<br />

PrEPArinG FOr GrOWTh<br />

In the future, quirin bank<br />

plans to offer business<br />

process outsourcing services.<br />

The users of these services<br />

— typically other banks and<br />

financial institutions wishing<br />

to outsource part or all of<br />

their business processes<br />

— will also be using <strong>RSA</strong><br />

SecurID. In addition, the<br />

bank anticipates growing its<br />

regular customer base from<br />

the current level in<br />

the low thousands to more<br />

than 10,000 by 2010, and<br />

is quite confident that <strong>RSA</strong><br />

SecurID will grow with<br />

them. i<br />

<strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine Vol. 5, No. 1, 2008 1


solutions<br />

<strong>RSA</strong>’s strategy for<br />

information risk management<br />

Taking a holistic, risk-based<br />

approach to IT security<br />

By Christine Kane<br />

After years of viewing information security as a defensive<br />

strategy, designed to prevent bad things from happening,<br />

enterprises are starting to demand more from their<br />

security investments. They recognize that security can<br />

also contribute to an organization’s success by helping<br />

drive key business initiatives, such as accelerating<br />

<strong>innovation</strong> and collaboration and reducing compliance<br />

costs. (See “From Brakes to Breakthroughs”, page 8.)<br />

But before this transformation<br />

can take hold, says <strong>RSA</strong>’s Steve<br />

Preston, organizations must surmount<br />

the shortcomings of today’s<br />

fragmented approaches to security.<br />

“Most organizations are in a reactive<br />

mode when it comes to security<br />

threats and industry regulations,<br />

and they struggle to manage security<br />

with point solutions.” says Preston,<br />

senior director, Solutions Marketing,<br />

<strong>RSA</strong>. “The problem with<br />

this ‘silo’ approach is that good<br />

efforts in one area can be quickly<br />

nullified by failures in another.”<br />

Preston offers the example of a<br />

bank that has effectively deployed<br />

technology to protect its online<br />

banking portal from fraud only to<br />

have a privileged user copy confidential<br />

customer data to an unsecured<br />

laptop which is eventually<br />

stolen. The loss has to be disclosed,<br />

and the customer trust that has<br />

been gained with anti-fraud technology<br />

is completely undone by a<br />

lack of policy enforcement in the<br />

back office. Preston likens this situation<br />

to the carnival game Whaca-Mole.<br />

“You hammer the problem<br />

down over here and it pops up<br />

again over there. IT needs to engage<br />

the business in a way that not only<br />

puts security into relevant business<br />

context but also helps IT prioritize<br />

where to invest in security.”<br />

AdVOCATinG A nEW APPrOACh<br />

Faced with these realities, industry<br />

watchers and thinkers have called<br />

for a more holistic approach to information<br />

security and compliance,<br />

one that is based on the established<br />

discipline of risk management.<br />

In the study “Information Risk<br />

Management in Financial Services,”<br />

TowerGroup Senior Analyst Rodney<br />

Nelsestuen writes: “Practicing<br />

a holistic approach to security<br />

and information risk assures that<br />

business information contributes to<br />

achieving marketplace and business<br />

goals. … Policy, practices, and<br />

technologies that provide a defense<br />

for information also can support<br />

the business’s offensive strategy.”<br />

EnLiGhTEnMEnT sTArTs hErE<br />

Making the transition from today’s<br />

“silo security” represents a significant<br />

shift for organizations, says<br />

Bob Blakely of the Burton Group.<br />

14 Vol. 5, No. 1, 2008 <strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine


Illustration by Greg Mably<br />

“There is a process of enlightenment<br />

that organizations need to go<br />

through to effectively manage any<br />

kind of risk, including information<br />

risk,” says Blakely. “This process<br />

starts with understanding that<br />

risks have to be consciously managed<br />

and processes have to be put<br />

in place to assess an organization’s<br />

risk appetite, current risks and vulnerability.<br />

You then need to design<br />

controls that mitigate risk within<br />

one’s appetite. And you have to<br />

assess the effectiveness of those<br />

controls to be sure you’re operating<br />

within your tolerance while also<br />

achieving regulatory compliance.<br />

“The finance industry — and,<br />

to a lesser extent, the healthcare<br />

and energy industries — are the<br />

first industries to have reached this<br />

point of enlightenment,” he says.<br />

“With the rollout of its Information<br />

Risk Management strategy, <strong>RSA</strong> is<br />

helping organizations evolve to this<br />

stage of awareness and put in compensating<br />

controls using tools such<br />

as data loss prevention, encryption<br />

and authentication.”<br />

ThrEE COrE PrinCiPLEs<br />

Introduced last fall for the financial<br />

services industry and now being offered<br />

to other industries, <strong>RSA</strong>’s Information<br />

Risk Management strategy<br />

provides an end-to-end, holistic<br />

approach for protecting a business’s<br />

most critical information assets.<br />

(See sidebar, “<strong>RSA</strong>’s Comprehensive<br />

Approach.”)<br />

“There are three pillars to our<br />

strategy,” says Preston. “The first is<br />

<strong>RSA</strong>’s information-centric approach<br />

to security, where you begin by<br />

understanding what information is<br />

critical to key business initiatives,<br />

such as growth through acquisitions<br />

or expanding partnerships.<br />

Then you diligently ‘follow the data’<br />

to gain a more holistic view of all<br />

the places where it exists across the<br />

organization, where the points of<br />

vulnerability are, and what events<br />

“Many people think risk<br />

management is about<br />

risk minimization, and<br />

it’s not. It’s about risk<br />

optimization. There are<br />

some risks you want<br />

to take because the<br />

payoff is so great; the<br />

challenge is to mitigate<br />

your risk to a tolerable<br />

level. A good risk<br />

management program<br />

allows you to take risks<br />

that your competitors<br />

can’t.”<br />

BoB BLakLey<br />

aNaLyst, BurtoN group<br />

could put your business at risk.”<br />

This is a very complex task. Data<br />

resides in many places, it’s mobile,<br />

it’s constantly being transformed,<br />

and it’s at the center of collaborative<br />

processes. “Tools for data<br />

discovery and classification are a<br />

critical part of our solution because<br />

they make our strategy actionable,”<br />

says Preston, explaining that the<br />

tools provide a basis for applying<br />

policy consistently across the universe<br />

of corporate information.<br />

PriOriTiZinG inVEsTMEnTs<br />

The second core concept behind<br />

<strong>RSA</strong>’s strategy is the idea that<br />

security investments should be<br />

prioritized, based on the amount<br />

of risk a given activity entails<br />

relative to the potential business<br />

reward, and in keeping with the<br />

organization’s appetite for risk. In<br />

this context, risk is defined as the<br />

likelihood an event will occur and<br />

the consequences if it does.<br />

“The first thing a lot of people<br />

want to talk about is tape encryption,”<br />

says Preston. “In other words,<br />

many companies are putting locks<br />

<strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine Vol. 5, No. 1, 2008 1


solutions<br />

on doors that almost no one is walking<br />

through. This results in over-scoping and<br />

misaligned investment in security. What<br />

organizations need to do is enable their<br />

highest priority business initiatives by<br />

protecting the information that is most<br />

valuable at the points where it is most<br />

vulnerable.”<br />

Many analysts agree, including Blakley.<br />

“Many people think risk management<br />

is about risk minimization, and it isn’t,”<br />

he says. “It’s about risk optimization.<br />

There are some risks you want to take because<br />

the payoff is so great; the challenge<br />

is to mitigate your risk to a tolerable<br />

level. A good risk management program<br />

allows you to take risks that your competitors<br />

can’t.”<br />

EnsUrinG rEPEATABiLiTY<br />

Once enterprise information has been<br />

located and a risk assessment performed,<br />

the next step is to implement controls<br />

— including policies, technologies, and<br />

tools — to mitigate that risk. Here, repeatability<br />

and reuse of security controls<br />

is central to <strong>RSA</strong>’s strategy.<br />

“You get repeatability from using<br />

rsA’s COMPrEhEnsiVE APPrOACh<br />

16 Vol. 5, No. 1, 2008 <strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine<br />

BrYAn PALMA of EDS says<br />

that many enterprises<br />

are ready to embrace<br />

information risk management.<br />

common, standards-based frameworks<br />

and best practices,” says Preston.<br />

“Frameworks like ISO 27002 and the<br />

PCI Data <strong>Security</strong> Standard let you build<br />

to the gold standard, get you 80 to 95<br />

percent of the way toward building your<br />

controls, and help eliminate unnecessary<br />

<strong>RSA</strong> brings together all the components an organization needs to plan and implement an<br />

Information Risk Management strategy. The five main aspects to <strong>RSA</strong>’s approach include:<br />

1 A GlobAl Risk FRAmewoRk <strong>Security</strong> is aligned with key business initiatives. For critical<br />

data, a risk assessment provides a holistic view of risk across lines of business and operations.<br />

Policy is developed based on best practices.<br />

offerings include: Risk Assessment Services, Policy Review and Development, <strong>Security</strong><br />

Assessments.<br />

2 inFoRmAtion ClAssiFiCAtion And disCoveRy Information is classified so appropriate<br />

policies and protections can be systematically applied. Data and application discovery tools<br />

are used to locate all instances of sensitive information across the enterprise.<br />

offerings include: Information Classification, Information and Application Discovery.<br />

3 ContRols on PeoPle Policy is automatically enforced by implementing controls such<br />

as authentication and access management that enable users to securely access enterprise<br />

resources and perform transactions while balancing risk, cost and convenience. Controls are<br />

based on standard frameworks, such as ISO 27002 and PCIDSS, enabling repeatability.<br />

offerings include: Credentials Management and Credentials, Authentication, Access<br />

Management, and Integrated Intelligence (transaction monitoring and adaptive authentication).<br />

4 ContRols on dAtA Automated controls are implemented to protect structured and unstructured<br />

data, whether it is in use, in motion or at rest on endpoints, networks and servers.<br />

offerings include: Data Loss Prevention, Encryption and Key Management, Information<br />

Rights Management.<br />

5 RePoRtinG, Audit And ComPliAnCe Compliance with security regulations and policies is<br />

validated by auditing controls and documenting their effectiveness.<br />

offerings include: Event Management, Compliance Reporting.<br />

or redundant controls.”<br />

Preston says his group<br />

has been systematically<br />

documenting how <strong>RSA</strong> and<br />

EMC products map to key<br />

frameworks so customers<br />

can be apprised of built-in<br />

controls that are already<br />

compliant.<br />

Gartner Group has<br />

pointed out that the number<br />

of security controls<br />

an organization deploys<br />

is a good proxy for the<br />

complexity and cost of its<br />

compliance program. Some<br />

companies using a risk-oriented<br />

approach to compliance<br />

report that they have<br />

eliminated 30 to 70 percent<br />

of their controls, which<br />

contributes to lower costs, reduced complexity<br />

and improved reliability.<br />

TAKinG sTOCK OF rsA’s sTrATEGY<br />

Are people ready to embrace security as<br />

a business accelerator? “I’d say roughly<br />

20 percent of enterprises already ‘get it’,”<br />

says Bryan Palma, vice president, Global<br />

Information <strong>Security</strong> for EDS, which<br />

partners closely with EMC/<strong>RSA</strong> on many<br />

outsourcing and systems integration<br />

opportunities. “Another 60 percent are<br />

ready for that message but are not fully<br />

on board, and the remaining 20 percent<br />

are still back in the mindset that security<br />

is an inhibitor.”<br />

Palma believes that <strong>RSA</strong> is well positioned<br />

to help companies move to the<br />

next stage of understanding and enablement.<br />

“On the tactical side, <strong>RSA</strong> has<br />

strengths that align with where the market<br />

is heading. These strengths include<br />

their expertise around data security, their<br />

focus on application security from an<br />

encryption standpoint, and their work<br />

in identity assurance and credentialing<br />

— both in consumer and enterprise markets.<br />

These are real differentiators.<br />

“On the strategic side, <strong>RSA</strong> has<br />

benefited from being acquired by EMC,<br />

in terms of how well they work with<br />

enterprise customers, how they understand<br />

the business side of security, and<br />

their openness to partnering with<br />

integrators, service providers and technology<br />

vendors.” i<br />

Photograph by Charles Ford<br />

C<br />

M<br />

Y<br />

CM<br />

MY<br />

CY<br />

CMY<br />

K


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government update<br />

“We’re worried<br />

about the<br />

survival of<br />

our economy<br />

because<br />

of cyber<br />

vulnerabilities.<br />

We know the<br />

electrical<br />

generating<br />

system in the<br />

United States is<br />

at risk, and the<br />

economy can’t<br />

survive without<br />

electricity.”<br />

ALAn PALLEr<br />

the SANS<br />

Institute<br />

18<br />

By Sarah Jensen<br />

A<br />

progress<br />

report<br />

on<br />

cybersecurity


Five years after the release of the National Strategy to<br />

Secure Cyberspace, the threat of cyber attack remains real,<br />

but today we better understand who the attackers are and<br />

what we must do to thwart them. Nationally recognized<br />

information security experts assess our progress to date,<br />

actions that remain to be taken and the challenges the next<br />

president of the United States faces in this area. >><br />

“The<br />

presidential<br />

hopefuls all<br />

have some<br />

very sharp<br />

cybersecurity<br />

advisors, so I<br />

believe they’ll<br />

be in a position<br />

to take action<br />

when they get<br />

into office, no<br />

matter which<br />

becomes<br />

president.”<br />

JAMEs LEWis<br />

Center for<br />

Strategic and<br />

International<br />

Studies<br />

<strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine Vol. 5, No. 1, 2008 19


government update<br />


computer systems. In its<br />

first implementation, at the<br />

U.S. Air Force, FDCC cut<br />

patch time from 57 days to<br />

72 hours and reduced costs<br />

by $100 million. By February<br />

4, all federal agencies were<br />

required to implement<br />

FDCC, which standardizes<br />

the configuration of<br />

approximately 300 settings<br />

on Windows XP and Vista<br />

computers.<br />

ThE EinsTEin PrOGrAM<br />

A traditionally voluntary<br />

program, Einstein has since<br />

2004 kept watch on federal<br />

agencies’ networks for the<br />

presence of computer worms<br />

and other unwanted traffic,<br />

correlating cross-agency<br />

security incidents. Already,<br />

Einstein sensors have<br />

identified malicious packets<br />

indicating Department of<br />

Agriculture systems had been<br />

penetrated and infected,<br />

allowing swift elimination of<br />

the infection.<br />

One problem Einstein<br />

targets is spear phishing, an<br />

e-mail spoofing fraud that<br />

seeks unauthorized access to<br />

an organization’s confidential<br />

data. “Spear phishers are<br />

already inside and they<br />

burrow deep,” says Paller.<br />

“The National Cyber Initiative<br />

will watch traffic at such a<br />

high fidelity with so much<br />

analysis that there’s a chance<br />

those burrowing worms will<br />

get flagged.”<br />

Other recent guidance<br />

by the government includes<br />

the President’s Strategic<br />

Plan for Combating Identity<br />

Theft, released in April 2007.<br />

Led by the Federal Trade<br />

Commission and the Justice<br />

Department, the plan focuses<br />

on educating the public to<br />

be cautious about divulging<br />

personal information and<br />

altering the way businesses<br />

obtain that information. In<br />

the corporate sector, the<br />

Payment Card Industry Data<br />

<strong>Security</strong> Standard requires<br />

merchants, banks and other<br />

members of the payment card<br />

industry to protect consumer<br />

data by implementing security<br />

best practices and proven<br />

tools such as firewalls, data<br />

encryption and access control.<br />

A nEW COMMissiOn<br />

LOOKs AhEAd<br />

In response to last summer’s<br />

outbreak of cyber attacks,<br />

CSIS brought together<br />

security experts to create the<br />

Commission on Cybersecurity<br />

for the 44th Presidency,<br />

a strategy and set of<br />

recommendations for the next<br />

administration to utilize in its<br />

effort to secure cyberspace.<br />

Intended as an update of<br />

the National Strategy, the<br />

Commission focuses on<br />

actions the next president<br />

should take in his or her first<br />

year in office. “To its credit,<br />

this administration has made<br />

inroads in cybersecurity, but<br />

the next president will have to<br />

do even more,” says Lewis.<br />

“The current campaign initiative<br />

illustrates that<br />

cybersecurity is not something<br />

we can ignore anymore,”<br />

he continues. “The presidential<br />

hopefuls all have some<br />

very sharp cybersecurity advisors,<br />

so I believe they’ll be in<br />

a position to take action when<br />

they get into office, no matter<br />

which becomes president.”<br />

A sAFE CYBErFUTUrE<br />

A 2007 Consumer Reports<br />

study found that one in<br />

four users faces a chance<br />

of becoming a cyberfraud<br />

victim, and that 17 percent<br />

of respondents had no<br />

antivirus software installed.<br />

In the absence of federal<br />

mandates requiring vendors<br />

to include high-level security<br />

in every system, vendors<br />

must be encouraged to do<br />

so voluntarily. “The most<br />

important thing we must do<br />

is provide incentives for<br />

vendors to bake security<br />

into the system,” says Paller.<br />

“We need software that is<br />

configured securely when<br />

we buy it. We don’t want to<br />

buy it and then have to worry<br />

about whether we’re secure<br />

enough.”<br />

Shannon Kellogg, director<br />

of Information <strong>Security</strong><br />

Policy in EMC’s Office of<br />

Government Relations<br />

and a member of the CSIS<br />

Cyber <strong>Security</strong> Commission<br />

for the 44th Presidency,<br />

agrees that vendors should<br />

be building more security<br />

into their products. “When<br />

you compare where the IT<br />

industry was in 2003 when<br />

the National Strategy came<br />

out to where we are today, it’s<br />

really night and day,” Kellogg<br />

says. “Platform companies<br />

like EMC have invested<br />

substantial resources in<br />

building in more security and<br />

setting up software assurance<br />

processes based on effective<br />

best practices.” In fact, to<br />

advance these types of efforts<br />

throughout the industry, EMC<br />

joined forces with Microsoft<br />

and other leading IT vendors<br />

to found SAFECode (www.<br />

safecode.org) in 2007.<br />

nEXT UP: rEEnGinEErinG<br />

ThE inTErnET?<br />

Even so, Paller and Lewis<br />

agree, such defenses are not<br />

enough.<br />

“We’re going to have<br />

to actually reengineer<br />

the Internet,” says Paller.<br />

“Eventually, there will be<br />

two Internets. Right now,<br />

no one knows who you are<br />

on the Internet. You can<br />

sell pornography, you can<br />

make anonymous political<br />

statements, you can attack<br />

other people.”<br />

The future configuration,<br />

he suggests, will be a<br />

cyberspace made up of an<br />

open Internet and a second<br />

Internet where every person’s<br />

and every computer’s identity<br />

is known. “If you’re a bank,<br />

you want to know someone<br />

“We must provide incentives for vendors to bake<br />

security into the system.We need software that<br />

is configured securely when we buy it.”<br />

claiming to be your customer<br />

really is your customer,” he<br />

says. Such a configuration<br />

would require substantial<br />

changes to every router on<br />

the Internet and cost in the<br />

billions of dollars.<br />

“But we’re in an arms<br />

race,” Paller stresses. “Nation<br />

states will spend anything<br />

to control other nations’<br />

computers, anything. You can<br />

never completely solve the<br />

problem, so we’ve got a lot of<br />

work to do just to keep up. But<br />

long term, I am hopeful.”<br />

Lewis shares Paller’s<br />

optimism. “We have a very<br />

inventive set of opponents,”<br />

he admits. “We recognize<br />

our vulnerabilities and<br />

have developed operable<br />

initiatives. What we’re doing<br />

now goes beyond the National<br />

Strategy.” i<br />

<strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine Vol. 5, No. 1, 2008 1


sa labs<br />

Getting into<br />

your Pc at<br />

WarP speed<br />

inside<br />

When <strong>RSA</strong> SecurID meets Wi-Fi<br />

By JasoN m. ruBiN<br />

ChAnCEs ArE YOU pushed<br />

a button on your key fob this<br />

morning and the doors of your<br />

car immediately unlocked.<br />

An ordinary act, to be sure,<br />

and yet fairly extraordinary as<br />

well. After all, why isn’t it that<br />

quick and easy to get into your<br />

computer?<br />

Such was the inspiration<br />

Vol. 5, No. 1, 2008 <strong>RSA</strong>, The <strong>Security</strong> Division of EMC Vantage Magazine<br />

for the Wireless Authentication<br />

Research Project<br />

(WARP). According to <strong>RSA</strong><br />

Labs Consulting Technologist<br />

John Brainard, “The goal<br />

of WARP was to develop a<br />

solution that would enable a<br />

user to quickly yet securely<br />

log on to his or her computer<br />

without typing. This would<br />

eliminate input errors and<br />

make it easier to access network<br />

resources while on the<br />

phone or otherwise manually<br />

engaged.”<br />

Think of it as an <strong>RSA</strong> SecurID<br />

token with a Wi-Fi antenna<br />

attached. The original<br />

prototype, about the size of<br />

a cigarette case, was a plastic<br />

box containing three AAA<br />

batteries, an antenna, and an<br />

entire Linux computer in a<br />

board smaller than a stick of<br />

chewing gum.<br />

Though effective, the unit<br />

was rather clunky and less<br />

convenient to carry than a<br />

regular SecurID token. Furthermore,<br />

the box had limited<br />

functionality. “We knew we<br />

could do a lot more if we<br />

had an electronic interface,”<br />

Brainard says. “For example,<br />

if there was a screen where<br />

you could see a message or a<br />

file, you could use the unit as<br />

a smart card and confirm and<br />

electronically sign transactions<br />

or decrypt documents.”<br />

qUiCK, CLEAn, And<br />

COnVEniEnT<br />

The solution <strong>RSA</strong> Labs<br />

hit upon — to implement<br />

WARP functionality in software<br />

within a smart phone<br />

— worked on a number of levels.<br />

First, it utilized powerful,<br />

existing technology. And, if it<br />

wasn’t much smaller, at least<br />

it was something users would<br />

be sure to keep on hand.<br />

“With a phone you have<br />

something people will use and<br />

keep with them,” says Brainard.<br />

“It’s also a good native<br />

environment for Wi-Fi. We<br />

could have used Bluetooth,<br />

but it’s not as well supported<br />

in PCs.”<br />

Since PCs are only open<br />

to one Wi-Fi channel at a<br />

time, the WARP unit identifies<br />

itself as a network access<br />

point so it can be used anytime.<br />

Because it never actually<br />

connects to a network<br />

and no hardware needs to be<br />

installed on the user’s PC, the<br />

unit and its embedded token<br />

code can be used on any computer.<br />

Currently, there are four<br />

main applications for the<br />

WARP device:<br />

• UnLOCK A PC WiTh PUsh-<br />

BUTTOn EAsE. This would be<br />

particularly useful in medical<br />

settings, where as many as<br />

15 doctors may share a single<br />

computer and need to quickly<br />

and securely access patient<br />

and other information, or<br />

digitally sign orders.<br />

• EAsY WEBsiTE LOGOn. Users<br />

can access their retail or<br />

online bank accounts quickly.<br />

They may need to manually<br />

enter a PIN if two-factor authentication<br />

is used.<br />

• ACCEss EnCrYPTEd FiLEs.<br />

Users can create a separate<br />

volume on their hard drive<br />

for sensitive files they have<br />

encrypted. The WARP unit<br />

would enable them to access<br />

this volume.<br />

• rECEiVE TrAnsACTiOn VEri-<br />

FiCATiOn rEqUEsTs. Before<br />

a transaction is completed,<br />

users can receive an SMS<br />

message on the smart phone<br />

asking them to verify the<br />

terms and contents of the<br />

transaction.<br />

“By demonstrating WARP<br />

at the <strong>RSA</strong> Conference, we<br />

hope to generate customer<br />

interest,” says Brainard. “If we<br />

can, then we’ll work to further<br />

refine the technology and<br />

perhaps it will be productized<br />

someday.” i<br />

Illustration by Stuart Bradford


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©2008 <strong>RSA</strong> <strong>Security</strong> Inc. All rights reserved. <strong>RSA</strong> and the <strong>RSA</strong> logo are either registered trademarks or trademarks of <strong>RSA</strong> <strong>Security</strong> Inc. in the United States and/or other countries. Wipro is a trademark of Wipro Ltd.


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