2011 iia pittsburgh grant thornton llp presentation (nov 2011)
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Emerging Technology - Risks and ChallengesTRANSCRIPT
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Emerging Technology Challenges and Solutions for Internal Audit and
Compliance
Danny Miller, CISA, CGEIT, CRISC, ITIL, QSAPrincipal
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Topics
• Current Technology Landscape• Emerging Technology
– Cloud computing– Mobile computing– Cybersecurity
• Potential IA Complexities• Solutions• What’s Next?
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Current Technology Landscape
• On-premise hardware, software, and management
• Support may be on-shore, near-shore or off-shore
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Current Technology Landscape (continued)
• Localized processes and controls• Prompt remediation when required• Clear data ownership• Straightforward compliance approach
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Current Technology Landscape (continued)
• Challenges/benefits– It's expensive and requires a lot of overhead– Difficult to scale and react quickly– Significant embedded cost structure– Inflexible to meet business need– Easier to maintain audit trail
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Emerging Technology Trends
Spending on public IT cloud services will grow at more than five times the rate of the IT industry in 2011-2012
Enterprise IT planners begin to include cloud-computing expertise in some of their job searches to be prepared for the projects of the short-term and mid-term future
Hosted private clouds will outnumber internal clouds 3:1…But service providers have been incrementally ready.
Cloud management and monitoring will fuel enterprise cloud adoption
32% of CIOs expect virtualization to be their top investment in 2011
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Emerging Technology
• Cloud computing– Saas, PaaS, IaaS, DaaS
• Mobile computing– Mobile platforms that are blurring the line between a
hand-held and complex computing
• Data analytics– Master Data Management
• Cybersecurity– Trends
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Emerging Technology Platforms (continued)
Types of Clouds• Public
- Shared computer resources provided by an off-site third-party provider
• Private- Dedicated computer resources
provided by an off-site third-party or use of Cloud technologies on a private internal network
• Hybrid- Consisting of multiple public
and private Clouds
Models of Cloud:• Software as a Service (SaaS)
- Software applications delivered over the Internet
• Platform as a Service (PaaS)- Full or partial operating
system/development environment delivered over the Internet
• Infrastructure as a Service (IaaS)- Computer infrastructure delivered
over the Internet• Desktop as a Service (DaaS)
- Virtualization of desktop systems serving thin clients, delivered over the Internet or a private Cloud
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Emerging Technology Platforms (continued)
Public Cloud Private Cloud
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Emerging Technology Platforms (continued)
Cloud computing – Hybrid cloud
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Emerging Technology Platforms (continued)
Mobile computing
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Emerging Technology Platforms (continued)
• Mobile computing is:– Wireless– Utilizes tablet platforms and smartphones– Internet-based– Communication via 4G and WiFi– Scaled applications
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Potential New IA Complexity
• Cloud computing– Availability & performance– Business continuity– Cybersecurity– Data encryption– Privacy (especially in Healthcare & Life Sciences)
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Potential New IA Complexity (continued)
Cloud computing (continued)– Compliance
• FISMA• HIPAA• SOX• PCI DSS (card payments)• EU Data Protection Directive, et al.
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Potential New IA Complexity (continued)
Mobile computing– Security (physical and virtual)– Data ownership– Service interruption and recovery– Data archiving– Availability
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Potential New IA Complexity (continued)
Mobile computing– WiFi/4G security– Surveillance and access control– Availability– Data ownership and recovery– Auditability– Bluetooth “hijacking”– AIDC
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Solutions
Cloud computing– Demand good security in the contract with provider– Have a "return of data" plan at end of contract– Know where the data is and who has access– Deploy a layered security architecture– Assess and inventory risks– Conduct annual security policy audits– Deploy and authenticate user credentials– Encrypt all stored data (P2P encryption)– Actively manage passwords and segregation of duties– Implement layered firewalls
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Solutions (continued)
Mobile computing– Encrypt all WiFi access– Clarify data ownership– Implement service interruption plan– Disable Bluetooth communications– Deploy device specific security software– Encrypt all communications
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
What’s Next?• Distributed computing (the Cloud)• Cybersecurity & Privacy focus• Virtualization• Advanced IA tools
– Analytics– Provenance engines– Enhanced hardware firewalls– Advanced encryption technology– New data segregation and security standards– Secure digital communications
• Standards such as ITIL, COBIT and PCI are integrating and are now complimentary
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
What’s Next? (PCI Data Security Standards v2.0)
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
What’s Next? (PCI Data Security Standards v2.0)
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
What’s Next? (PCI Data Security Standards v2.0)
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
What’s Next? (Enterprise Master Data Management)
• Companies are awash in data, but which data is the right data to use? Data grows by 50%+ each year.
• Company leadership needs "one version of the truth" on dashboards, reports and in analytical datasets.
• Internal Audit and Compliance departments should be concerned about controls, availability, integrity and quality of data.
• Conceptually: Data and information are valuable corporate assets
and should be treated as such Data must be managed carefully and should have
quality, integrity, security and availability addressed.
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
What’s Next? (Enterprise Master Data Management)
MDM is the management of an institution’s fundamental data that is shared across multiple business units, everything from project budgets to donor contacts to employee contact information. You can think of master data as all of the enterprise data (people, places, things and activities) that the institution needs to conduct its business.
The goal of MDM, consequently, is to ensure the accuracy, consistency and availability of this data to the various business users.
We believe that all organizations would benefit greatly from creating a strategy for MDM and implementing an MDM program in light of its current state and an organization's future data and information needs.
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
What’s Next? (Enterprise Master Data Management)
Data and Information Management
Data Governance Data Architecture Management
Data Development Data Operations Management
Data Security Management Data Quality Management
Reference and Master Data Management
Data Warehouse /Business Intelligence Management
Document and Content Management Metadata Management
Table 1: Scope of Data Management
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
What’s Next? (Data Governance Activities)
• Establish institutional data standards• Identify and resolve data disputes• Implement necessary changes to data standards and
policies• Communicate actions to the organization as appropriate• Ensure accountability of institutional data policies and
standards• Escalate issues to Governance Team as necessary
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Questions?
2011 Central Regional ConferenceNovember 6-9, 2011 / Pittsburgh, PA, USA
Emerging Technology Challenges for Internal Audit and Compliance
Danny Miller, CISA, CGEIT, CRISC, ITIL, QSANational Solutions Lead – Cybersecurity
Regional Solutions Lead – Business ConsultingPrincipal, Grant Thornton LLP
[email protected]://grantthornton.com/