A brave new Europe?

http://www.securitymanager.net/magazine/article_462_new_europe.html

There is a growing realisation among organisations, be they large or small, that they need to focus on 'what they do best' but also explore new initiatives. More than ever, this dichotomy involves both productivity and revenue optimization yet can be somewhat unsettling. For instance, how do you leverage the relationships you have invested considerable resources in without ‘opening’ the door to unwanted guests? With the drive for new areas of growth, it is apparent that organisations need to protect themselves from potential financial and productivity losses, not to mention the downtime, caused by challenges with extending the enterprise. According to a recent European survey conducted by IDC, respondents were asked to state the challenge associated with a wide variety of potential IT issues and then subsequently rank these on a scale from 1-5, with 1 representing no significance and 5 for very high significance. Security was stated as the top challenge moving forward, with three quarters of respondents ranking it as significant or higher while a full 38% of respondents considering it as the highest significance (value 5). While the rush of the late nineties might have been to connect fast, the reality of today seems to be to connect securely. This heightened importance is reflected across major economies of Europe, as shown in Figure 1.




How significant is Security in terms of IT challenge?


Security adoption however remains fear-driven in Western Europe thus far, with 45% of respondents quoting the risk of a major security breach as highly significant (rating 5 out of 5) while security audit results (identifying security gaps) shows considerable consideration in 23% of European organisations.




Excluding physical security to the business premises, how significant would you say the following factors are in influencing your security infrastructure?


Historically, investment in security has been very reactive. This can be attributed to a lack of awareness, as well as a lack of data and models to assist in justifying business cases and planned investment in security. Many investments in IT security are still in response to unauthorized access or malicious activity occurring, but there is evidence that security is increasingly being viewed as more strategic by select corporations, especially those that pursue an integrated Web-enabled strategy.

As organisations recognise the security threat is more than just a virus or breach issue, we are seeing an increased appreciation of the breadth of the security challenge. Figure 2 shows another clear trend correlated to the types of challenges organisations face; that is, the distinction between threat-led and strategic-led security spending. For instance, risk drivers, being the most prevalent today, are reactionary and more operational in nature due to either an internal review of existing systems or external market forces. Enabling drivers, on the other hand, are more aligned with forward-thinking objectives and thus could be considered more strategic investment than spending. Still, the way forward may not always be clear. Combined with the diversity of the individual technologies that are used to address these security challenges, organisations are facing an environment growing in complexity.

The Changing Security Paradigm

The Changing Security Paradigm

Essentially, organizations are investing in IT security in an attempt to protect corporate assets and mitigate risk. To achieve these goals, however, organisations need to both identify the assets they are trying to protect and the level of risk they are willing to bear on those assets. By examining the risk factor according to business principles, organisations are better able to determine which assets are most valuable to them and how much they should spend on protecting them. This solution-based view of security has subsequently led to demand for services around consulting, assessment and management to address security risks. Increasingly, organizations seeking competitive advantage from investments made to extend the enterprise will need to move away from a reactive into a more proactive mindset by designing a security culture that addresses the longer-term objectives of their business.




Asset Optimisation Versus Risk Mitigation


Without question, as more and more business opportunities lie "outside the firewall", security needs increase as companies open their internal business processes to outsiders. This fact will force companies to develop a more holistic approach to security and it will push the demand for security expertise to deliver an all-encompassing solution based on business need – not the reverse.

What is the holistic approach to security?

Holistic security means making security part of everything and not merely a separate function. This bottom-up approach ensures security isn't merely added to the enterprise; it becomes embedded in all processes that enable business goals to move forward. Rather than a necessary cost, in this way security becomes an enabler.

This has been driven by the need for enterprises to expand ‘trusted relationships’ with customers, partners, suppliers and channels. To improve security you will need to know more about who is being authorised and what they are authorised to do as well as have a level of assurance that all of this is being done properly. For instance, as security becomes ubiquitous, people will improve the processes that allow them to work more productively. IDC's ongoing research amongst IT managers from establishments actively engaged in e-business reveals significant security solution "critical decision factors". These factors are a reflection of the effort to balance widening access and effective security. These include: What's needed, then, is a roadmap for developing a holistic approach to IT security not looking at IT security as a set of isolated tools designed to address specific issues as they arise, but rather as a total solution, which considers all aspects and addressescorporate/organizational imperatives for business continuity, confidentiality and privacy, among other things. This brings security into the bigger picture of risk assessment and management in general. More specifically, a typical enterprise must address three distinct yet interwoven risk areas; While this study sets out to address information security only, it is nonetheless essential to keep in mind security is part of a “greater” picture and as such, can move issues out of the IT department alone.

Where do I begin?

The place to start then is by undertaking an evaluation of risk both prior to implementing security processes and solutions, and on an ongoing basis afterwards. In formulating a proactive plan necessary to implement effective IT security, many professional security product and service vendors recommend a risk assessment exercise in order to identify assets, threats and vulnerabilities, and to develop a risk-minimized posture. In this way, the scope of the risk at hand and resources needed can be earmarked. By extending this then to the strategic goals of the organization, a plan can be drawn up to prioritize the move towards holistic security in a step-wise manner.

European organizations need to ensure that investment decisions are made as a result of co-operation between the business side and the technology side, that is between the CEO and the CIO. Because key issues around security investment are more strategic today rather than the technological push of only a few years back, support of top management, including the board, is crucial to the success of any security initiative. This is particularly the case when considering the overall size of security investments. In general, as security moves from point solutions to holistic solutions, they quickly “outgrow” the decision making of IT departments in isolation. While technology may be the facilitator to a desired end state, it is overall senior management attention that will ensure strategic alignment.

The study now strives to reinforce the above views by looking at technologies, solutions and selected practical examples in the market today. To this end, the remainder of the white paper is divided in two distinct sections: To be continued in the next weeks...

Published: 05/2004
Author: IDC / Steria

An IDC White Paper commissioned by Steria.