Cyber Today CYBER SECURITY IN THE TIME OF COVID-19 DIGITAL TRANSFORMATION: IS YOUR BOARD PREPARED? ONLINE SAFETY: THE BIG CHALLENGES REMAIN ...
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Cyber MAY 2020 CYBER SECURITY IN THE TIME OF COVID-19 Today DIGITAL TRANSFORMATION: IS YOUR BOARD PREPARED? ONLINE SAFETY: THE BIG CHALLENGES REMAIN
CONTENTS PUBLISHED BY : ABN 30 007 224 204 430 William Street Melbourne VIC 3000 Tel: 03 9274 4200 Contents Email: media@executivemedia.com.au FOREWORD Web: www.executivemedia.com.au 2 Foreword 3 Minister’s foreword PUBLISHER David Haratsis OPINION david.haratsis@executivemedia.com.au 5 Cyber security in the time of COVID-19 EDITOR INSIGHT Giulia Heppell 10 Consumer Data Right: With three giulia.heppell@executivemedia.com.au months to go, are you ready? 14 With digital transformation comes risk: EDITORIAL ASSISTANTS Is your board prepared? Kate Hutcheson, Simeon Barut 18 Case study: YMCA NSW DESIGN STARTUPS Abby Schmidt 22 Startup success as Aussies go global 26 Cyber security entrepreneurs gear up PARTNER ORGANISATIONS to solve business problems with CyRise CyberCX | Deloitte | Exabeam Pty Ltd Katana Technologies Limited STARTING OUT Rapid7 Australia Pty Ltd 30 Entering the cyber workforce The editor, publisher, printer and their staff and agents are not responsible for the accuracy or MEMBER INTERVIEW correctness of the text of contributions contained in this publication, or for the consequences of any use 34 Putting the ‘security’ made of the products and information referred to into chief security officer in this publication. The editor, publisher, printer and their staff and agents expressly disclaim all liability of whatsoever nature for any consequences arising SPOTLIGHT from any errors or omissions contained within this publication, whether caused to a purchaser of this 38 Security in the time of pandemic publication or otherwise. The views expressed in the articles and other material published herein do not necessarily reflect the views of the editor and DIVERSIT Y publisher or their staff or agents. The responsibility 42 Diversity key to cyber security skills gap for the accuracy of information is that of the individual contributors, and neither the publisher nor editors can accept responsibility for the accuracy of DATA PROTECTION information that is supplied by others. It is impossible for the publisher and editors to ensure that the 46 Information security for a advertisements and other material herein comply GDPR-inspired ecosystem with the Competition and Consumer Act 2010 (Cth). Readers should make their own inquiries in 48 Is your patching up to scratch? making any decisions, and, where necessary, seek professional advice. CYBER AT TACKS © 2020 Executive Media Pty Ltd. All rights reserved. 52 Legal issues arising from a data breach Reproduction in whole or part without written permission is strictly prohibited. All stock images sourced from iStock.com CYBER SAFET Y Vegetable based inks and recyclable materials are 55 Online safety: used where possible. The big challenges remain Cyber Today | 1
FOREWORD Foreword A message from Damien Manuel, Chair, AISA. T he cyber security industry – and — developing intuitive and scalable cyber the entire world – has been shaken security solutions that can adjust to a by the emergence of the novel work-from-home workforce coronavirus, known officially — gaining better understanding of how as COVID-19. While the world businesses can leverage and use digital watched as China dealt with a new pathogen collaborative tools to reduce travel back in December 2019, other countries — understanding what doesn’t work and missed the opportunity to learn, adjust what could possibly work, and drive and take immediate action, mainly because innovation of new services, products humans are not very good at assessing risk and solutions. and we naturally take the position that bad While all we hear about in the news at things happen, but to other people. the moment is the number of new infections, Long before the outbreak, over the the mortality rate and new laws or measures past 20 years we somehow moved from a that are being put into place by various society and business community that didn’t governments around the world to address the tolerate poor telecommunications – hence pandemic, businesses also need to continue to the reliability of copper landlines – to a manage their other risks, stay afloat and deal society that is now tolerant of conferencing with ongoing cyberthreats. Misinformation with jitters, lags and every fifth word across social media and attacks from threat missed. We moved from reliable but limited actors both locally and internationally are technology, to unreliable but feature-rich still impacting businesses and communities. solutions. We also moved from having Over the next six to 12 months, our lives will warehouses with inventory, to a just-in- change. We also need to remember that many time nature of manufacturing and delivery. lives are already changing as people lose loved The world pivoted from locally made to ones, businesses go under and job losses are felt globally delivered. While we, as a business as the global economy slows. In times like these, community, reduced costs and increased the role cyber security plays in protecting the profitability through these measures, we community and organisations from hostile forgot about one thing – resilience. actors will continue to grow in importance, particularly as we all begin to work and operate in an environment of global uncertainty. Misinformation across social media and Aside from the physical health of staff attacks from threat actors both locally and and the community, in times of stress and uncertainty we also need to manage and internationally are still impacting businesses monitor mental health. The trauma that and communities some people in the community – particularly frontline staff at supermarkets and in other service industries – are experiencing The pandemic presents society with through physical, verbal and emotional abuse challenges, but also with opportunities, and due to panic buying by customers, needs to be these include: acknowledged and managed. — building improved and more diverse Things will be difficult; plans will be supply chains to remove single reliance on disrupted and the times ahead will be a company, country or technology emotionally challenging. We can reduce — understanding the impact of global these impacts by pulling together, supporting disasters on interconnected supply those who are less able, and learning from chains to better estimate and predict the this experience to build a more cohesive and consequences of disruptions resilient society. • 2 | Cyber Today
FOREWORD Minister’s foreword A message from Tim Watts, Shadow Assistant Minister for Communications and Cyber Security. A s the Australian information Morrison Government, the absence of political security (InfoSec) community leadership on cyber security has been telling. stands on the threshold of a new In recent years, there have been a lot of Commonwealth Cyber Security people doing a lot of things in Australian Strategy, it’s worth reflecting upon cyber security, but little evidence of a the lessons of the first four-year strategy. In centrally coordinated strategy. We’ve seen a 2016, then Prime Minister Malcolm Turnbull flurry of initiatives launched in defence, law announced the Commonwealth’s first Cyber enforcement, national security, international Security Strategy with great fanfare and diplomacy, industry development, research significant government funding. It contained and skills development. But the follow dozens of objectives and policy initiatives, through on these initiatives has been patchy and since then we’ve made some progress. at best. It’s unclear what the government’s But the biggest lesson we’ve learnt is that the priorities are across this sprawling agenda. contents of a strategy mean little if there’s no Even worse, as specific initiatives have been political leadership to deliver it. left to unfold on their own accord within Four years ago, the 2016 Cyber Security their own governmental silos, we’ve seen Strategy promised ‘clear roles and plenty of inconsistency. For example, how responsibilities’ for the Australian cyber did the government reconcile its encryption security sector. Central to this was a dedicated legislation with its goals for diplomacy and minister and a special adviser to the Prime industry development? Minister. Today, neither position exists. Politicians aren’t popular right now Since these roles were abolished by the (believe me, I get it!), but this is where we Cyber Today | 3
FOREWORD need political leadership. Australian cyber the Australian Government are collaborative security needs political leadership within and coordinated… One possible improvement government to set priorities, lead change and could be to have a single coordinating improve accountability. Australian cyber minister and/or a coordinating executive security also needs political leadership with oversight across all cyber functions’. outside of government to speak directly We’ve seen the same argument made to Australians in the media and in the internationally. The United Kingdom’s community about the InfoSec challenges the Joint Committee on the National Security nation is facing, and to bring together the Strategy considered a similar question in the diverse members of the InfoSec community UK context in 2018, and concluded, ‘There as we confront these shared challenges. is little evidence to suggest a “controlling It’s not just me saying this. Far from it. mind” at the centre of government, driving In the public submissions to the new Cyber change consistently across the many Security Strategy, you’ll find the same departments... involved. Unless this is arguments over and over again. addressed, the government’s efforts will Deakin University, for example, is likely remain long on aspiration and short on arguing for a ‘minister dedicated to cyber delivery. We therefore urge the government security rather than a shared portfolio. It to appoint a single Cabinet Office Minister also signals to the market the importance who is charged with delivering improved of cyber security and enables a minister cyber resilience across the United Kingdom’s to focus on key priorities’. Meanwhile, critical national infrastructure’. Lockheed Martin complains of a ‘fragmented In 2018, Alastair MacGibbon said that the approach that is often contradictory, greatest existential threat we face today is a incomplete, and not cohesive’, and catastrophic failure of our cyber security. It’s VeroGuard Systems observes that ‘currently, not hard to see why. Yet, there is no person there is no evidence that a government, in the Morrison Government who has this as association or organisation is responsible their sole day job. for managing cyber risks in the economy’. Reform is important. Fresh policies Microsoft wrote in its submission that are important. But for them to matter – ‘the government should consider whether for them to be properly and coherently the existing governance arrangements are implemented – we need a dedicated ensuring that cyber functions performed by minister. It’s long overdue. • 4 | Cyber Today
OPINION Cyber security in the time of COVID-19 BY DR SUELET TE DREYFUS, SCHOOL OF COMPUTING AND INFORMATION SYSTEMS, THE UNIVERSIT Y OF MELBOURNE As organisations shepherd entire office buildings of employees out the door to work from their homes in response to the COVID-19 crisis, cyber security is taking on a new urgency. N ever before has there been such become an experiment in commoditised a rapid migration en masse from customisation at scale. The following are formal office environments to some key messages. home workspaces. IT departments have, in many IT managers, as much as possible, shape cases, been given impossibly short deadlines the cyber security around the user’s tasks, to cater to this. Slow reactions and poor not the other way around leadership from some governments have led Cyber security works better in the real world to pandemic panics of all sorts, and the result when it is designed and shaped around the is that IT departments around the globe are way end users actually work, not when simply scrambling to ‘make this all work by Monday’. imposed from a long list of repeating ‘no, As if rapidly building the infrastructure you can’t do that’. Not surprisingly, if cyber to ‘recreate the office’ in each staff security gets in the way of people doing member’s unique home environment wasn’t things they want to, they find workarounds. complicated enough, IT security teams And, as we know, workarounds can trigger have to figure out how to defend, from the risky behaviour. outset, this complex and decentralised new The principle of least privilege is to give work environment. end users only what they need to do their Picture an employee copying company jobs. ‘Only’ is enough – but only if you data on his 16-year-old son’s spare laptop as understand their jobs in the new entirely a workaround to some barrier, in order to working-from-home world. participate in a work conference call and group work session. What could possibly The end user thinks cyber security ‘gets in go wrong? the way’ Building in security by design in the new Hospitals provide a good window into the work-from-home set-up isn’t easy in these thinking of end users about this. Medical time frames, but it’s incredibly important. staff view their mission as saving patients’ Everyone is on a steep learning curve. By the lives and providing high-quality care. If end of this pandemic, IT security teams may cyber security rules get in the way of that, have developed new skills in flexibility and then they’re going to do what it takes to end-user empathy – a positive thing for the carry out their mission regardless. In a future of IT security in organisations. But it’s world of patients laying sick on gurneys in going to be a bumpy road to get there. overcrowded emergency department (ED) Many employees may only be comfortable hallways, doctors are not going to have two- or productive working in certain ways factor authentication (2FA) very high on their from home. COVID-19 cyber security could priority lists. Cyber Today | 5
OPINION We’re about to enter a period where things That’s time-consuming, but there can be move very fast inside hospitals and clinics. a high pay-off in more successful end-user Predictions are that the healthcare system adoption. Fewer attempted workarounds will be swamped. Our own research team’s means less risk of a breach to clean up in the study shows that ED doctors conduct, on middle of a pandemic, when physical access to average, 100 tasks an hour under normal devices may be difficult. circumstances1, but these are probably not going to be normal circumstances. Cyber Enter cheerful cyber security security measures cannot slow medical staff Human factors in cyber security matter down, or people may die. because human error plays a major role in Yet, hospitals have experienced attack exposing organisations to risk. Taking the after attack, including recent ransomware end user on the journey on security upgrades assaults that took out regional health services is more likely to get buy-in. in Victoria in late 2019. The Victorian Auditor- One of the most obnoxious things the General pointed out the serious risks in the end user can experience is a command, via hospital system.2 a heavy-handed email, to implement some Figuring out how to balance these security upgrade in short order – ‘or you will competing interests means that those in IT be cut off’. Astonishingly, this still happens. security need to pause to examine, even There are better ways to go about this. briefly, how people go about their work in an Employ teachers, journalists, science average day. It’s not just about customisation communicators – those who can explain to home-work settings; it’s about problem- why the extra hassle is needed and can make solving how people’s work is going to evolve transitions much easier. An employee who over time in those settings. And it’s unlikely understands what happened to Maersk3 will to be a one-size-fits-all solution. be more inclined to take the extra time and 6 | Cyber Today
OPINION effort. Bespoke walk-throughs for untangling easily leverage off this theme to educate the a frustrated end user’s knots can shift a new army of workers from home that cyber negative employee to an accepting one. A hygiene is also important. Some in the industry smile, patience and empathy really matter for worry that this term trivialises the risk, but problem-solving in times of high stress. like fighting a pandemic, basic steps can let Software developers should also turn us #FlattenTheCurve so IT defenders aren’t on automatic updates as the default setting overwhelmed. It’s a concept that employees are when shipped. Imagine if all software probably ready for and would embrace. automatically updated unless the end user A key factor here is that organisations manually turned it off from doing so. This must give staff the paid time needed to simple standardised action by developers adapt and learn how to use new security could change the IT security landscape requirements for end users. Too often, quickly and effectively. Some software does this training can be seen as an imposition this, but not all. because the staff member’s other work is not Developers can still give end users the reduced. Small lessons, in bite-size chunks, same level of micro controls for if, when may work best. and how much to update. Some end users In summary, cyber security must not will likely want the flexibility to turn make people’s lives harder and must be as off automatic updates, or be asked for automated as possible. permission to update each time, and there’s IT workers are vital to keeping the nothing wrong with that. But the COVID-19 economy afloat and supply chains and virus environment isn’t the only place we functioning during this pandemic, and need herd immunity. resourcing them properly in the coming months is a winning strategy. • Cyber handwashing References The public is getting the message loud and 1 https://people.eng.unimelb.edu.au/reevaml/One%20 clear from public health officials that hand Hundred%20tasks%20an%20Hour.pdf cleaning is vital to stopping the spread of 2 https://www.audit.vic.gov.au/report/security-patients- hospital-data?section= COVID-19. As such, hand sanitiser has sold out 3 https://www.wired.com/story/notpetya-cyberattack- everywhere. The IT security industry could ukraine-russia-code-crashed-the-world/ Cyber Today | 7
PARTNER CONTENT Keeping a security mindset Neil Campbell, Vice President for Asia-Pacific at Rapid7, recently talked with Nigel Hedges, Head of Information Security for CPA Australia, about keeping a security mindset in this current market. Neil Campbell (NC): What InfoSec Virtual private networks (VPNs) have a latency initiatives have you put in place that are impact, so you have to think about voice quality. proving valuable right now? Nigel Hedges (NH): Shoring up security NC: When you have so many people operations, with the idea of improving working remotely, your VPN’s quality may the mean time for incident detection and degrade, and you may make a risk-based response issues, was a driver for me. Also, decision that not all traffic needs to go Nigel Hedges the implementation of an identity and access back via the VPN. Was that a challenge you management program. Another was to adopt faced? software as a service (SaaS)–based security NH: We are using a split tunnel VPN along management tools with quick set up times with a low-touch, cloud-based hygiene and low levels of involvement. That has really solution to farm that data over, so it is still benefited CPA Australia. We have been able protected. That way we are still able to to pivot quickly to remote working, and our receive security telemetry from the remote key security solutions can provide richer environment when people are using the security data via the internet. internet, including SaaS applications outside Neil Campbell the VPN. NC: What have been your main challenges with staff working from home? NC: I have heard you say that identity is NH: We’ve been a consumer of infrastructure the new perimeter. How does that work? as a service for some time now to meet the NH: Regardless of the device, gateway or needs of members. As early as July last year, firewall, I want to know who is using it or we had implemented SaaS security controls; traversing it. Based on that identity, we can however, with this sudden requirement for bring all the security information together securing remote workers coming so quickly, and make informed decisions. we had a fast shift in some areas, including our customer experience staff using call NC: How does your central security management software and working remotely. solution keep track of everything? NH: There is a certain reality that integration with all these different platforms is not possible for one solution to be able to get that information and interpret it in a rich way in all cases. For me, using a security-monitoring platform that has a rich plug-in ecosystem is really important. One of the tasks I do frequently is checking the plug-ins of Rapid7’s security information and event management (SIEM) to see what new integrations have been added so that I can create a richer dataset from which to detect unusual activity. Having multi-factor authentication technology, also integrated to the SIEM, is integral to enabling remote working while minimising risk. • This article is an extract. For the full conversation, visit rapid7.com/c/ANZIDR. A | Cyber Today 8 | Cyber Today
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INSIGHT Consumer Data Right With three months to go, are you ready? BY DAVID BRAUE Looming open data requirements put new security burdens on financial services companies, but CDR’s security and data-management model offers lessons for everyone. 10 | Cyber Today
INSIGHT D ata governance is hard – but as a often been haphazard or even absent in fast- major new consumer data regime growing, data-hungry organisations. nears its 1 July commencement MicroStrategy’s recent Global State date, you nonetheless need to of Enterprise Analytics 2020 report make sure your data governance highlights the ongoing problems with data and security policies are well under control. governance. Data privacy and security The Australian Competition and concerns are cited by 43 per cent of Consumer Commission’s (ACCC’s) role in respondents as the key challenge around coordinating Consumer Data Right (CDR) better use of data and analytics. legislation highlights its intended role as a Other key issues include limited access to catalyst for competition, forcing companies data and analytics across the organisation to standardise their product descriptions (29 per cent), lack of the proper technology and give consumers access to their data to (21 per cent), and lack of a centralised tool facilitate comparison shopping. within the organisation for capturing and From 1 July, the big four banks will be analysing data (21 per cent). required to give consumers access to credit Each of these is an obstacle for better and debit card, and deposit and transaction access and management of corporate data account data through a secure CDR portal. – and, in turn, is a significant blocker for Mortgage and personal loan data will execution of the data governance that an follow from the beginning of November. open-data regime like CDR requires. Consumers can appoint third parties, such This translates into relatively as brokers and financial advisers, to access deficient data governance ratings, with data on their behalf. just 38 per cent of survey respondents Smaller approved deposit-taking institutions saying that over half of their data was (ADIs) will follow suit from 1 July 2021, by which governed. The survey also identifies a time the ACCC will have ramped up efforts ‘divide between the data-privileged and to extend the regime to energy providers. insights-rich, and the data-deprived and Telecommunications companies will be the next insights-starved’, with executives enjoying target, with other industries certain to follow if good data visibility that operational staff CDR delivers the pro-consumer outcomes the struggle to match. government wants. In a CDR environment, such internal CDR has evolved over several years, with barriers are no longer acceptable: the point enabling legislation only passed in mid 2019 of the exercise is to give consumers access and formal rules about its operation finalised to all of their relevant data, with failure to at the beginning of this year. Early tests of do so potentially punishable by sizeable data exchange involved the big four banks financial penalties. and nine other entities, which were chosen as Complying with the legislation introduces data recipients to refine the CDR ecosystem. complexities of its own. Many organisations, The CDR regime is ‘a complex but after all, will struggle to meet CDR-related fundamental competition and consumer privacy expectations around the creation reform, and we are committed to delivering it of a culture of privacy; appointing a only after we are confident that the system is senior manager to lead a CDR strategy; resilient, user-friendly, and properly tested’, implementing appropriate reporting according to ACCC Commissioner Sarah Court. processes; gaining and managing informed ‘Robust privacy protection and and express consent from consumers via a information security are core features suitable dashboard; security governance; of the CDR, and establishing appropriate management and reporting of security regulatory settings and IT infrastructure incidents; and destruction or de-identification cannot be rushed.’ of CDR data when it’s no longer needed. The organisation gets in the way Securing the CDR For technology and security professionals While the rules governing CDR are relatively working in financial services, the clear, meeting their requirements demands introduction of CDR poses very real issues adoption of technical standards that have around data governance – which has, to date, been developed by CSIRO data arm Data61, Cyber Today | 11
INSIGHT MicroStrategy’s recent Global State of Enterprise Analytics 2020 report highlights the ongoing problems with data governance. Data privacy and security concerns are cited by 43 per cent of respondents as the key challenge around better use of data and analytics which has been appointed as the Data That register incorporates a number Standards Body (DSB) for the CDR regime. of security practices – and associated Version 1.2.0 of those standards, which technologies – including management of are called the Consumer Data Standards identities and access, management and (CDS), has been held to be the ‘binding revocation of digital certificates, and the baseline of the CDR regime’. As such, every publishing of APIs and web interfaces to technology and security manager – even enable CDR participants to query metadata those in other industries where data across registered entities. management is essential, if not legally Other security mechanisms address mandated – should make themselves issues like authentication flows, consent familiar with the guidelines. mechanisms, transaction security, encryption Those guidelines revolve around eight standards, levels of assurance, and more. technical principles and four ‘outcome principles’ – the first of which notes that Taking data to the next level ‘security of customer data is a first order CDR compliance, then, requires much more than outcome’ that must be delivered by the CDR simply installing a product. Its complexity is application programming interfaces (APIs). part of the reason that CDR’s go-live date, which ‘The API definitions will consider and was originally set for late 2019, has been pushed incorporate the need for a high degree back twice – and why many organisations will of security to protect customer data,’ the struggle to achieve compliance. principle says. ‘This includes the risk Yet, even as they push towards the finish of technical breach but also additional line, companies must be on notice for further concerns of inadvertent data leakage changes. A current Treasury inquiry is through overly broad data payloads exploring potential next steps for the CDR and scopes.’ legislation and framework – including Affected organisations must also apply a potential ‘write’ capability that could with Office of the Australian Information empower agents to create bank accounts, Commissioner (OAIC)–mandated privacy organise payments and change products on safeguards designed to prevent the customers’ behalf. inadvertent compromise of personal data – Such changes obviously carry significant adding even more onus on security managers additional security risks – demanding that may find their data-management ongoing compliance with evolving technical environment completely inadequate for the standards, as well as changing design and demands of the CDR regime. functional expectations. A formal security profile, included within ‘Although undertaking such a further the CDS definition, builds on standards, review in 2020 may be considered to be including the Financial-grade API Read premature, it indicates the importance Write Profile (FAPI-RW) and standards the government places on CDR, and the relating to OpenID Connect 1.0 (OIDC). This benefits it may bring to Australians and includes mechanisms for securing the the Australian economy,’ Holding Redlich federation of data exchange among multiple Partner Angela Flannery and Senior system entities, including data holders, Associate Sarah Cass wrote in a recent data recipients, authorising customers, and analysis of CDR developments. a register of these parties supported and ‘Even businesses in sectors that are maintained by the ACCC. outside those targeted for CDR in the short 12 | Cyber Today
INSIGHT term should already be considering how For consumers, CDR will catalyse the they may benefit (and help their customers creation of such innovation by freeing benefit) from CDR.’ them from the artificially high burden of Those benefits can be significant, switching providers. For companies, that according to a recent Enterprise Strategy added competitive pressure will provide Group and Splunk survey of 1350 business critical impetus for building a clear, secure and IT decision-makers, which confirms the data-management infrastructure to support importance of a mature data strategy. those innovations. Organisations with clear data-management Whatever your industry, discipline policies report benefits that include better around better data management offers the customer retention and time to market or promise of significant business improvement manufacturing time, the survey found. – particularly as exploding data creation Australian organisations are at the front of sees data flooding onto cloud services that the global pack, with 74 per cent saying that require different management strategies. The they have managed to reduce their volume of cleansing and organising of enterprise data is ‘dark data’ – unknown and untapped data – therefore a key priority. over the past 12 months. This process also provides the Within the financial services industry, opportunity to develop and enforce clear 89 per cent of firms agreed that the intelligent security guidelines around the management use of data analytics was becoming their and access of data. By analysing how only source of differentiation – and analysis privacy and technical authorities have showed that organisations with mature data approached the challenge of CDR, you’ll be policies were 10 times more likely to develop well positioned to ensure that your own innovative products and services that turned organisation is taking on an approach that is into significant revenue earners. as secure as possible. • Cyber Today | 13
INSIGHT With digital transformation comes risk: Is your board prepared? CONTENT PROVIDED BY THE AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS Digital transformation is alluring. It’s an opportunity to use computers to streamline operations, connect physical infrastructure to the internet, collect data in real time, optimise operations and improve productivity and performance. But is your organisation ready? T he Internet of Things (IoT) is one governance, each of those connections is a of the key digital transformation potential backdoor for attack. technologies and offers many opportunities for businesses. What if we get it wrong? Australian agriculture There is mounting evidence to suggest that in technology (agtech) company The Yield is the race to transform, some organisations are using sensors to give oyster farmers early downplaying, not appreciating, or are even warnings of changing water conditions unaware of the cyber risks that can arise via their mobile device. This technology from connecting physical equipment to the assists 300 oyster growers to better navigate internet, which links operational technology environmental changes. with information technology. Rio Tinto’s autonomous heavy-haul train Retired Major General Patricia Frost in Western Australia’s Pilbara region uses is the Washington DC–based Director of data from connected sensors and artificial Cyber at Partners in Performance, a global intelligence (AI) to guide the way the train is management consulting firm. She has 32 years’ driven, delivering product to the port nearly experience in the military and was, until 2016, 20 per cent faster than a manned train. Director of Cyber, Electronic Warfare and According to the Internet of Things Information Operations for the US Army. Alliance Australia (IoTAA), at the end of 2018 Frost notes that many of the industrial there were 10 billion IoT devices in operation systems used to manage utilities, water globally. That is tipped to reach 20 billion purification, gas and steam turbines are by 2022 and more than 60 billion by 2025. legacy systems. They are built standalone, Technology analyst Telsyte predicts that often using supervisory control and data the average Australian household will have acquisition (SCADA), which, although not 37 IoT devices by 2023. immune to cyber attacks, have been somewhat ‘If policymakers and businesses get it protected by the air gap between them and right, linking the physical and digital worlds the internet. There is now a race to connect could generate up to US$11.1 trillion a year these legacy systems to modern information in economic value by 2025,’ according to technology networks over the internet. management consultants McKinsey & Co. ‘That is creating a new attack surface and There are, however, risks involved in vulnerability,’ says Frost. ‘Systems in the connecting real-world objects to smart past were literally separated and isolated devices. Without proper security and in air gap networks. My concern is that 14 | Cyber Today
INSIGHT we are rushing to digital transformation Belinda Cooney GAICD, Chief Financial without truly understanding the operational Officer of Interactive – an Australian IT risk based on threats the business is now services provider – and Non-Executive exposed to.’ Director of the 86 400 neobank, believes that This stretches from criminal ‘hacktivists’ while directors have not been blindsided to nation-state attacks. by the integration of IT and operational technology, the pace at which it has Boards must understand and assess the risk proceeded has caught some unawares. Frost warns that boards need to understand what equipment is being connected to which Cyber security questions for directors networks – and for what purpose – and and CEOs they also need to assure themselves that the ‘When I think about security and risk as a organisation is properly prepared to deal director, it is very hard to decouple IT risk with a cyber attack. She says that boards from operational technology because you should make serious assessments. have people using the systems,’ says Cooney. ‘Ask, where does the value of the business ‘You can’t think of them as isolated things. sit? What are our most critical assets? When asking questions at the board level, And then overlay the digital domain and a lot of people think cyber risk is mitigated connections between the IoT and business by doing a penetration test to figure out if information network,’ she suggests. ‘Why are anything has happened. In my experience, we making certain connections? Is that truly it is a lot more than that. You need to extend of value to the business? Or is it just ease of your line of questioning. Who is using access? In some cases, technology has made the system and what is the access to our us a little lazy. We want the data now, even physical environment?’ though it’s not bringing much value to us.’ Directors need to consider how Certainly, there is enthusiasm to connect decisions are being made about the physical and the digital. Extrapolating connecting the digital and the physical. McKinsey & Co research through to 2025, ‘Who is responsible and accountable?’ IoTAA CEO Frank Zeichner estimates that asks Frost. ‘The governance may need to IoT can deliver an economic kicker to the change in companies when connections local economy worth up to $116 billion and a are made in the digital domain that could two per cent hike in national productivity. bring a detrimental operational risk to This is not to be sneezed at. the company.’ Cyber Today | 15
INSIGHT Below are five questions boards and ensure that organisational culture provides management should be discussing when it ‘enough psychological safety for people to comes to cyber risk. speak up if they see something funny, [and] 1. How is our executive leadership informed report it if it’s not quite right’. – through our systems, processes and The time and focus a board dedicates to governance – about the current level data and privacy governance will depend and business impact of cyber risks to the on things such as the organisation’s size, the organisation? quantity and quality of its data holdings, 2. What is the current level and industry, risk appetite and history, and its business impact of cyber risks to the strategic direction. The basic steps, however, organisation? What is our plan to are the same. address identified risks? 3. How does our cyber security program 1. Foster a culture that values data apply industry standards and best and privacy practices? Have the values and risk appetite 4. How many and what types of cyber underpinning data handling been incidents do we detect in a normal week? established and communicated throughout What is the threshold for notifying the the organisation? Is the organisation executive leadership? appropriately equipped and resourced to 5. How comprehensive is our cyber incident embed the right culture into its people, response plan? How often is it tested? systems and processes? What channels does What is the role that board directors play, the board use to ensure that it knows how and are they included in annual exercises? data handling is occurring ‘on the ground’? Establishing a culture of effective data 2. Futureproof the board and privacy governance How do new data-driven business models and Besides good oversight of the cyber risks value chains enhance, or threaten, what the associated with data and operational organisation is doing? What new technologies technologies, Cooney says directors must can be deployed to enable the organisation to 16 | Cyber Today
INSIGHT do more with, and to protect, its data assets? 5. Focus on your stakeholders What new laws must the organisation adhere Does the board consider a wide range of to, and what frameworks, standards and stakeholder perspectives when making guidelines should the organisation take heed decisions about data? Is stakeholder-care of? Amid all the change, what are the attitudes a key value? Does this align with actual and mindsets of individuals, stakeholders, practice and is it communicated externally? regulators and lawmakers? What should the organisation do, or stop doing, to enhance stakeholder trust? 3. Appoint key personnel and hold them To help directors promote a good accountable data and privacy culture within their Does the organisation have key data, and organisations, the Australian Information privacy roles and responsibilities at the Security Association (AISA) recently joined operational and leadership levels? How forces with the Australian Institute of should resources and staff be allocated in Company Directors to publish a practical terms of compliance (protecting data) and boardroom guide, titled Data and Privacy performance (leveraging data) functions? Governance.1 The guide highlights What are the reporting requirements and current privacy compliance obligations key performance indicators? impacting boards in Australia and outlines a performance framework for how an 4. Enhance privacy and security resilience organisation might use and manage data as How ready is the board and executive a key asset. team to deal with a data-related crisis? Directors can access this guide at How can the board improve its resilience https://aicd.companydirectors.com.au/ capabilities, such as change readiness and membership/membership-update/data-and- incident management? Are privacy and privacy-governance-director-tool. • security risks accounted for throughout the organisation and in project development? 1 Australian Information Security Association and Australian Institute of Company Directors, 2019, How are third-party relationships managed, Data and Privacy Governance, Australian Institute of secured and assured? Company Directors Director Tool Cyber Today | 17
INSIGHT CASE STUDY: YMCA NSW How a quick board response helped an organisation during a ransomware attack. IN 2019, YMCA NSW was hit Land attending the Garma Chowdhary had worked with a ransomware attack that Festival of Traditional Cultures, previously with technology encrypted its operating system. and the organisation was services business Servian Instead of paying the ransom, between IT managers with a and called one of its partners board and management made contractor running the show. for advice. The YMCA a quick decision that helped the Reflecting on the attack, board and executive team organisation take back control.1 Chowdhary, who was Acting expedited communications It took YMCA NSW 20 days to Chair at the time, notes: ‘In and decision-making. They recover from the ransomware the not-for-profit world, there met daily from the Monday, cyber attack that crippled its is an assumption you won’t with critical incident team computer systems in August be targeted by cyber security meetings held every morning 2019. The not-for-profit youth attacks. It crippled us for and afternoon. Chowdhary organisation has a $70-million- three weeks’. dialled into board meetings per-year turnover, serves more The Y NSW, as it’s been from Arnhem Land, while than 40 communities and rebranded, is a sizeable Hughes and Le Bron called in employs more than 2000 organisation, but as a not-for- from London. people. Its services include profit it had considered itself an According to Andrew gymnastics classes, swimming unlikely target of cyber attack. Gemmell, Head of Cyber lessons, camping, out-of- Nevertheless, it had decent security at Servian, this rapid school-hours centres, and systems hygiene, made regular and clear engagement of youth and community services. backups, and was planning to the board was critical. ‘One If the cyber attack had forced move key systems to the cloud. of the keys to the success of the organisation to close its The board had addressed the this was just how strong the doors, around 15,000 families issue of cyber risk directly inside communications were,’ in New South Wales would have through its Risk, Audit and says Gemmell. ‘There were been affected. Finance Committee, and had regular board meetings and There’s never a good time recommended taking out [the directors] made sure they for a cyber attack, and for the cyber insurance earlier in 2019. were available and aware to YMCA, August was particularly The Y NSW also had make decisions very quickly.’ challenging. Chair Richard disaster recovery and business Chowdhary quickly Hughes and CEO Susannah continuity plans, and, following posted a letter detailing Le Bron were in London the Royal Commission into the attack on the website. for a global conference of Institutional Responses to Although no personal the international YGroup (to Child Sexual Abuse, had information was compromised which all international YMCAs developed a critical incident or lost, the YMCA used social belong), Deputy Chair Shirley response plan it was able to media to keep stakeholders Chowdhary was in Arnhem use. Although this plan did not fully informed. directly address a cyber attack, Chief Operating Officer 1 Extracted from ‘Quick board response could save your the board from the outset Lisa Giacomelli strove for organisation during a ransomware determined that, in alignment transparency. ‘I kept sending attack’, Company Director, March 2020, Australian Institute of with organisational values, emails to keep a clear paper Company Directors ransom would never be paid. trail so that every aspect of our 18 | Cyber Today
INSIGHT management of the incident was documented,’ she says. Gemmel adds, ‘Directors made sure they were available and aware to make decisions very quickly’. The Y staff had to work on personal computers and devices, and some had to work from home, all working round the clock to rebuild systems and operate the Y’s extensive businesses manually. Chief Financial Officer Jenny Woodward says that since the attack, the organisation has refreshed its disaster recovery and business continuity plans, ensuring that copies are printed and stored offsite; implemented an information security charter; boosted cyber education for staff and IT professionals; invested in systems monitoring and event detection services; and now has a three-year IT strategy and a road map that emphasises security. Servian worked with the Y Lessons for organisations Lessons for boards staff to ensure that systems — Engage in cyber security — Ensure that board members were restored in order of education for all staff and understand the risk of cyber criticality. According to IT professionals. attacks and their potential Chowdhary, ‘There was a — Assess the configuration consequences. business opportunity loss, of the network for — Address cyber security business continuity issues... potential weaknesses. explicitly in relevant board [and] a whole host of — Invest in modern cyber committees. compliance issues. The main security technology, — Review insurance cover lesson is that cyber security including monitoring and regularly, including attacks can happen to anyone’. event detection services business continuity and Cases such as these are a designed to arrest the specialist cyber insurance. reminder for directors to be spread of a cyber attack. — Seek regular cyber proactive with data security, says — Regularly revisit disaster security updates from Scott McKean, Chief Security recovery and business IT leadership regarding Officer of IT firm Interactive. continuity plans, ensuring systems resilience and ‘Board members should ask that contacts are current current risk landscapes. about the effectiveness of and printed copies of the — Determine how the their incident response plan: plans are accessible offsite. organisation could how quickly the business can — Identify executives continue to meet its detect and respond to an who will be responsible financial obligations and incident, what the implications for communicating pay staff if computer and potential damage from with official bodies systems access was any breach are, and what level following a data breach restricted for a significant of cyber insurance or other or cyber attack. period of time. • contingencies are in place.’ • Cyber Today | 19
PARTNER CONTENT Embracing cyber’s modern age Deloitte boosts its cyber practice to meet the cyber-is-everywhere demand. I n this pandemic era of COVID-19, we have service delivery, and customer experience all become even more aware that cyber isn’t and satisfaction – the professional services merely a technology issue, but a strategic firm announced that the founders and 50 business and personal risk that is impacting team members from Australian security every facet of our lives. architecture specialist Zimbani were joining As every aspect of our world becomes the firm from April, flagging its intention to even more connected – highlighted currently build on that recognition in a big way. by the flight to home-based working – latent Due to its speedy growth, Zimbani came cyber threats are exponentially growing in to the notice of Deloitte’s Technology Fast number and 50 in 2017, following its founding five years complexity. earlier, and, in 2018, was recognised by the Cyber had Australian Financial Review Fast 100 and already moved CRN Fast50. beyond the Deloitte’s CEO, Richard Deutsch, explains organisation’s that as cybercrime is regularly listed as walls and one of the major business risks globally, ‘It information is critical that businesses are on the front technology foot, anticipating, monitoring and managing environment the threats and key risk events in real time’. into the He adds. ‘Deloitte sees cyber-readiness and products resilience as a key enabler for our clients, themselves hence investing accordingly’. and the spaces Deloitte Australia Cyber Leader Ian where experts Blatchford adds that Zimbani’s focus on conceived security architecture and engineering them, and ‘makes us one of only a handful of providers customers use in Australia capable of operating at scale, them. Now, we adding to our previous deals in the region as are evermore conscious that cyber is in our part of our significant investment in Asia’. homes and our lives, and know that it is time Deloitte Asia Pacific Cyber Leader James to embrace cyber everywhere. Nunn-Price elaborates, pointing out that This is no longer a slogan, but the trigger across the region, Deloitte has recently for organisations and the people within them invested in Singapore, bringing in Practical to align their priorities and work together Smarts to the firm, as well as SecurePath in to embrace the fact that cyber is everyone’s Malaysia and Code QB in Thailand, in order responsibility. to ‘hyperscale our cyber business to ensure As an acknowledged leader1 in Asia-Pacific we deliver superior cyber expertise to our professional security services, Deloitte was clients at a time of unprecedented demand’. evaluated against 17 other major vendors in By adding this strength to its 17,000-plus the Asia-Pacific region. cyber practitioners worldwide and across its With an extensive list of scoring 125 offices – which include Australia, China, criteria and parameters – including the India, Japan, Korea, New Zealand, South-East comprehensiveness of its offerings, portfolio Asia and Taiwan – Deloitte brings more than benefits delivered, market execution, 26 years’ experience in providing cyber risk services to the region, enhancing the 1 IDC MarketScape: Asia/Pacific Professional Security Services – Advisory, Assessment and Awareness 2020 work of its 30-plus unique Cyber Intelligence Vendor Assessment (doc #AP45547920, February 2020) Centres worldwide. • A | Cyber Today 20 | Cyber Today
DELOITTE Cyber Everywhere. Go Anywhere. Cyber is about starting things. Not stopping them. Build solutions for a ‘cyber everywhere’ world. Strengthen controls to ensure you will thrive. Find out more at: www.deloitte.com.au/cyber © 2020 Deloitte Touche Tohmatsu. © 2020 Deloitte Touche Tohmatsu.
STARTUPS Startup success as Aussies go global Cyber Today shines a light on one cyber security company that is making big waves. 22 | Cyber Today
STARTUPS D atasec Solutions Pty Ltd is an Healthcare solutions IT security company based Datasec’s modular vision for Cryptix has in Melbourne. The company extended into the healthcare industry, develops, implements and in conjunction with HP and US partner supports cyber security and InTimeTec, to develop a device-based information management end-point solutions integrated electronic medical record (Cryptix) with a view to solving critical (EMR) solution for streamlining patient- security and compliance issues when centric data capture and integration into organisations transmit private or business- hospital EMRs. sensitive information. Cryptix EMR will improve patient The key to Cryptix is the modular nature data security in protecting personal of its design, which incorporates strong health information in accordance with authentication (with business rules) and key industry standards, like the US encryption. Each module is built on application HIPAA (Health Insurance Portability and programming interfaces (APIs) and can be Accountability Act of 1996), while also integrated into any third-party application, meeting compliance in Australia (Australian whether it is hardware or software. Privacy Principles) and Europe (General This design allows Cryptix to provide a Data Protection Regulation – GDPR). value-add, fast-to-market solution for vendors looking to integrate these key security tools into their range of solutions. Datasec’s modular vision for Cryptix has One such vendor is HP through its print division, which is working closely with extended into the healthcare industry, Datasec to build off device encryption in conjunction with HP and US partner (no data stored on the hard drive) and authentication solutions for its multifunction InTimeTec, to develop a device-based printers (MFPs). integrated electronic medical record (EMR) The journey for Datasec started in 2012 with the original concepts around the solution for streamlining patient-centric data technology. Through the next few years, capture and integration into hospital EMRs Datasec built out its product portfolio by including a secure file-sharing platform called Cryptix. In 2016, the company Key lessons decided to modularise its technology The journey, however, hasn’t been easy, and developed APIs around its three key and there are many lessons from Datasec’s pillars, which led to an opportunity with history. The following are the key takeaways. Samsung. A year later, Samsung Print — Think global, not local. Having a global was acquired by HP, which set in place the view opens up the business to much steps that have now led to Cryptix being broader opportunities. In cyber imbedded globally within the HP ecosystem security, foreign markets are often more – with products already available for mature and more open to investing in deployment via HP’s Workpath platform. innovative technology. Being involved in HP’s Workpath — Capital raising. It’s tough to raise development program as a beta developer investment for startups in Australia, but since 2017 has opened up myriad secondary having a bigger-picture view also opens opportunities for Datasec. the business up to foreign investment. With the growing cyber security — Partner. It’s difficult to do it alone at the compliance landscape, organisations are now best of times, but in the startup world, scrambling to integrate security modules doing so can be very taxing mentally, into their solutions. By using Cryptix, they physically and financially. Identifying can get to market in a matter of weeks or and engaging with key partners, who months, at worst. This is very valuable to understand products and benefits, can vendors like HP as it not only ticks the box assist startups in getting to market more for compliance, but it also gives them a big rapidly, and can provide a simpler path advantage over competitors. to success. Cyber Today | 23
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