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Bracing for the Tidal Wave of Data Privacy Compliance in America
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August 28, 2008
The Ford Pinto was a subcompact manufactured by Ford (introduced on 9/11/70 — another infamous coincidence?). It became a focus of a major scandal when it was alleged that the car’s design allowed its fuel tank to be easily damaged in the event of a rear-end collision, which sometimes resulted in deadly fires and explosions. Ford was aware of this design flaw but allegedly refused to pay what was characterized as the minimal expense of a redesign. Instead, it was argued, Ford decided it would be cheaper to pay off possible lawsuits for resulting deaths. The resulting liability case produced a judicial opinion that is a staple of remedy courses in American law schools.
What brought this on? Well, a recent conversation with a healthcare institution went something like this:
Us: Are you required to comply with HIPAA?
Them: Well, I suppose…yes
Us: So how do you demonstrate compliance?
Them: Well, we’ve never been audited and don’t know anyone that has
Us: So you don’t have a solution in place for this?
Them: Not really…but if they ever come knocking, I’ll pull some reports and wiggle out of it
Us: But there is a better, much better way with all sorts of upside
Them: Yeah, yeah whatever…how much did you say this “better” way costs?
Us: Paltry sum
Them: Well why should I bother? A) I don’t know anyone that has been audited. B) I’ve got better uses for the money in these tough times. C) If they come knocking, I’ll plead ignorance and ask for “reasonable time” to demonstrate compliance. D) In any case, if I wait long enough Microsoft and Cisco will probably solve this for me in the next release.
Us: Heavy sigh
Sadly..none of this is true and there is overwhelming evidence of that.
Regulations are not intended to be punitive of course and implementing log management in reality provides positive ROI
February 28, 2008
In October 2007 Gartner published a paper titled “Clients Should Prepare a ‘Recession Budget’ for 2008″. It suggested that IT organizations should be prepared to respond if a recession forces budget constraints in 2008. Its still early in 2008 but the FED appears to agree and has acted strongly by dropping key interest rates fast and hard.
Will this crimp your ability to secure funding for security initiatives? Vendor FUD tactics have been a bellwether but fear factor funding is waning for various reasons.These include
* crying wolf
* the perceived small impact of breaches (as opposed to the dire predictions)
* the absence of a widespread, debilitating (9/11 style) malware attack
* the realization that most regulations (eg HIPAA) have weak enforcement
As an InfoSec professional, how should you react?
For one thing, understand what drives your business and align with it as opposed to retreating into techno-speak. Accept that the company you work for is not in the business of being compliant or secure. Learn to have a business conversation about Infosec with business people. These are people that care about terms such as ROI, profit, shareholdervalue, labor, assets, expenses and so on. Recognize that their vision of regulatory compliance is driven mainly by the bottom line. In a recession year, these are more important than ever before.
For another thing, expect a cut in IT costs (it is after all most often viewed as a “cost-center”). This means staff, budgets and projects may be lost.
So how does a SIEM vendor respond? In a business-like way of course. By pointing out that one major reason for deploying such solutions is to “do more with less”, to automate the mundane thereby increasing productivity, by retaining company critical knowledge in policy so that you are less vulnerable to a RIF, by avoiding downtime which hurts the bottom line.
And as Gabriel Garcia Marquez observed , maybe it is possible to have Love in the Time of Cholera.
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