Company CISOs and Boards Brace for New SEC Cybersecurity Regulations

The U.S. Securities and Exchange Commission (SEC) is proposing new cybersecurity regulations that would require public companies to report cybersecurity incidents within four business days and to have a board-approved cybersecurity policy in place. The regulations are designed to protect investors from the risks of cybercrime and to hold public companies accountable for their cybersecurity practices.

Company CISOs (chief information security officers) and boards are bracing for the new regulations, which they believe will be costly and burdensome to implement. However, they also recognize that the regulations are necessary to protect companies and their investors from the ever-growing threat of cybercrime.

In this blog post, we will discuss the SEC's proposed cybersecurity regulations and what they mean for company CISOs and boards. We will also provide tips for companies on how to prepare for the regulations.

The SEC's Proposed Cybersecurity Regulations

The SEC's proposed cybersecurity regulations would require public companies to do the following:

• Report cybersecurity incidents within four business days. Companies would be required to report any cybersecurity incidents that have a material impact on the company or its investors.

• Have a board-approved cybersecurity policy in place. The policy should address the company's cybersecurity risks and how it will manage those risks.

• Conduct regular cybersecurity assessments. The assessments should identify and fix vulnerabilities in the company's systems and networks.

• Have a plan in place to respond to a cyberattack. The plan should include steps to contain the damage, notify regulators and customers, and restore operations.

The SEC's proposed regulations are based on the Cybersecurity Framework, a voluntary framework developed by the National Institute of Standards and Technology (NIST). The Cybersecurity Framework provides a set of best practices for organizations to follow to improve their cybersecurity posture.

The SEC's proposed regulations are likely to face opposition from some companies, who argue that they are too burdensome and costly. However, the SEC is likely to move forward with the regulations, given the increasing risk of cybercrime.

What the Regulations Mean for Company CISOs and Boards

The SEC's proposed cybersecurity regulations will have a significant impact on company CISOs and boards. CISOs will need to ensure that their companies are in compliance with the regulations, which will require them to implement and maintain a robust cybersecurity program. Boards will need to oversee the company's cybersecurity program and ensure that it is effective.

The regulations will also have a financial impact on companies. Companies will need to invest in cybersecurity controls and staff to comply with the regulations. The costs of compliance will vary depending on the size and complexity of the company.

Tips for Companies on How to Prepare for the Regulations

Companies can take the following steps to prepare for the SEC's proposed cybersecurity regulations:

• Assess your cybersecurity risks. The first step is to assess your company's cybersecurity risks. This will help you to determine which areas need the most attention.

• Implement appropriate security controls. Once you know your risks, you can implement appropriate security controls to mitigate them. This could include things like firewalls, intrusion detection systems, and data encryption.

• Train your employees. Your employees are your first line of defense against cyberattacks. Make sure they are trained on cybersecurity best practices, such as how to identify and avoid phishing scams.

• Stay up-to-date on cybersecurity news and trends. The cybersecurity landscape is constantly changing. Make sure you stay up-to-date on the latest news and trends so you can protect your company from new threats.

• Conduct regular cybersecurity audits. Regular cybersecurity audits can help you to identify and fix vulnerabilities before they are exploited by attackers.

• Implement a cybersecurity awareness program. A cybersecurity awareness program can help your employees to understand the risks of cybercrime and how to protect themselves and the company.

By taking these steps, you can help your company to comply with the SEC's proposed cybersecurity regulations and protect itself from the ever-growing threat of cybercrime.

Mastering Vulnerability Testing: Tips and Techniques for Robust Cybersecurity

Vulnerability testing, also known as vulnerability assessment, is the process of identifying, evaluating, and prioritizing potential security vulnerabilities in a computer system, network, or application. It involves simulating attacks or exploitation attempts to discover weaknesses in the system's defenses.

Vulnerability testing can be done manually or through automated tools, and it may include testing for known software vulnerabilities, configuration issues, and access control vulnerabilities. The goal of vulnerability testing is to identify potential security risks before attackers can exploit them and to provide recommendations for mitigating or eliminating them.

Standard vulnerability testing techniques include vulnerability scanning, penetration testing, and ethical hacking. These tests can help organizations identify weaknesses in their security posture and take appropriate measures to strengthen their defenses and protect sensitive data.

Vulnerability testing is a critical aspect of ensuring the security of computer systems, networks, and applications. As technology advances and cyber threats become more sophisticated, it is essential for organizations to regularly perform vulnerability testing to identify potential security risks and take steps to mitigate them.

Through vulnerability testing, organizations can identify software vulnerabilities, configuration issues, and access control weaknesses that cybercriminals may exploit. By identifying these vulnerabilities, organizations can take appropriate measures to strengthen their security defenses and protect their sensitive data.

Various techniques can be used for vulnerability testing, including automated tools, manual testing, penetration testing, and ethical hacking. Each of these techniques has its advantages and disadvantages, and organizations may use a combination of them to provide comprehensive vulnerability testing.

Determine the scope of the test: Clearly define what will be tested, including the network, systems, applications, and any other assets that could be vulnerable to attack.

• Use the right tools: Choose various tools, including vulnerability scanners, penetration testing tools, and web application scanners, to cover all potential vulnerabilities.

• Prioritize vulnerabilities: Prioritize vulnerabilities based on the level of risk they pose and their potential impact on the organization.

• Perform regular testing: Conduct vulnerability testing regularly after any significant changes or updates to the network, systems, or applications.

• Test from internal and external perspectives: Conduct tests from internal and external perspectives to identify vulnerabilities that both internal and external attackers could exploit.

• Ensure test results are accurate: Verify and validate test results to ensure they accurately reflect the actual vulnerabilities present in the system.

• Address vulnerabilities promptly: Take prompt action to address any vulnerabilities identified during testing, including applying patches, updating configurations, and implementing additional security measures.

• Document and communicate results: Document the vulnerability testing results and communicate them to relevant stakeholders, including IT staff, senior management, and external auditors.

In conclusion, vulnerability testing is an essential part of any organization's security program. It helps identify potential security risks before attackers can exploit them and provides recommendations for mitigating or eliminating these risks. By performing regular vulnerability testing, organizations can strengthen their security defenses, protect sensitive data, and reduce the risk of costly security breaches.

Staying on the Offence: SIEM & SOC Benefits

Many businesses these days do not have the resources or the skill set in-house to effectively create, administer and manage a fully operational Security Operations Center. A Security Operations Center (SOC) is a critical component of an organization's overall security strategy. It is a centralized team responsible for detecting, analyzing, and responding to security incidents in real time. In today's rapidly changing threat landscape, having a SOC is more important than ever.

Benefits of SOC as a SIEM

1. Protects against cyber threats: A SOC monitors and analyzes the organization's networks, systems, and applications for signs of cyber threats, such as hacking attempts, malware infections, and phishing attacks. By detecting threats early and taking action to prevent or mitigate them, a SOC helps to protect the organization from harm.

2. Increases efficiency: By centralizing security operations, a SOC helps organizations to be more efficient in their response to security incidents. The SOC team can respond quickly to incidents without coordinating with multiple departments and can share information and resources more efficiently.

3. Enhances compliance: Organizations are increasingly required to meet strict security and privacy regulations, such as the Payment Card Industry Data Security Standard (PCI DSS) or the General Data Protection Regulation (GDPR). A SOC can help organizations to comply with these regulations by monitoring their networks and systems for compliance and ensuring that any necessary changes are made.

4. Improves incident response: A SOC provides a dedicated team trained to respond to security incidents. This team can quickly contain and resolve incidents, reducing the impact on the organization and its customers.

In conclusion, having a security operations center is essential for organizations looking to protect their assets, reduce the risk of security incidents, and comply with industry regulations. By centralizing security operations, a SOC helps organizations respond to incidents more efficiently and effectively, ultimately reducing the risk of harm. CyberSecOP utilizes a US-based SOC team that is available 24/7/365 to ensure your business is protected by the latest ransom and malware threats out there.

Enterprise Risk Management vs. Traditional RM

Enterprise Risk Management (ERM) introduces effective risk management (RM) by attacking the issues differently to assess and remediate risks that affect the business. It takes a more robust approach than traditional Risk Management.

Traditional Risk: Business unit leaders, directors, and managers were responsible and accountable for risks in their respective departments. An example is the CFO, or Comptroller is responsible for risks relating to business cash flow and finance. This approach is very siloed.  Having some type of Risk management is better than not having it, but this approach does have its shortcomings:

• Unidentified risks that don’t fit nicely within a silo. Risks can be anywhere, and sometimes they do not necessarily align with the organizational chart resulting in unidentified risks.

•  Some risks may span multiple business units. If one leader identifies the risk the business may not understand its true impact and likelihood if it spans multiple departments.  An example of this would be a privacy law that affects Spain for example. If the compliance officer ranks this as very low risk because there is no business/consumers or data from Spain residents. However, down the hall in another c-suite office, there are ongoing talks about a possible partnership with a platform in that same country.

•  Silo risk owners may address a risk in their domain but not understand that the mitigations of their risk can affect another department.  A classic example is an IT change that mitigates some technical risks but impacts usability for other departments. This leads to frustration, confusion and ‘shadow IT’

•  Traditional risk typically focused on internal risks. ERM focuses on external factors as well

  Holistic Top-Down Enterprise Risk Management

Enterprise Risk Management attempts to fill these gaps by incorporating a holistic, all-hands-on-deck approach to risk management. EMR is a top-down approach that starts from a strategic approach that trickles down to the operational level (Beasley, 2016).

 ERM begins with an understanding of what the organization is trying to achieve short and long term. Identifying all assets (people, technology, data, solutions, networks) ranking those assets, identifying risks and then ultimately remediation and monitoring. It is key to understand that top management and key staff are involved in this process, not just a department leader.  

 Identify all risks. Whereas with traditional risk management, risks that fall out of a department can be missed, EMR focuses on strategy, compliance, operations, and tactics to attempt to address all risks (internal and external).  

The output of EMR should be a risk register that clearly identifies the enterprise's top risks that identify:

• Risk identification number

• Owner, responsible, and accountable parties

• Risk description

• Risk Remediation

• Risk milestones

• Key Risk Indicators

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EMR takes a more holistic approach to risk management and incorporates all levels of the business (strategy, tactical, operational). EMR focuses on internal and external risks. EMR is a cycle and not a project; the focus is always on understanding the business's top threats, their remediations if they are being implemented, and how effective those mitigations are.  This approach is the next step in the evolutionary process of risk management and provides one of the most impactful and thorough methods for risk management.

Written by:

Carlos Neto 1/9/2023

References:

Beasley , M. (2016). What is enterprise risk management? - North Carolina State University. NC State . Retrieved January 10, 2023, from https://erm.ncsu.edu/az/erm/i/chan/library/What_is_Enterprise_Risk_Management.pdf

ADVISORY: Reports of possible digital breach

ADVISORY: Reports of possible digital breach

 Okta investigating reports of possible digital breach

Lapsus$, a cyber extortion gang, has announced that they have breached Microsoft and Okta.

The gang has leaked torrents containing source code for Bing, Bing Maps, and Microsoft Cortana, as well as a screenshot of an internal Microsoft Azure DevOps account. They also claim to have had “Superuser/Admin” access to Okta’s systems for two months, and said its focus was “only on Okta customers.”

Both Microsoft and OKTA  have started an investigation to confirm or disprove they’ve been breached. 

Recommended Actions: 

These attacks are a striking reminder of the supply chain’s cyber risks - Real risks brought to organizations by use of softwares and systems like OKTA, Microsoft, as well as many others.

Please work with your vCISO or Risk Manager to ensure the proper Vendor Security controls and processes are in place as well as other vital security controls that will drastically reduce the possibility of these dangerous hacks spilling into your network and systems.

Author: Michael Sardari