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1 Moneysec - Moneyball for Information SecurityPhil AgcaoiliWednesday March 13, 2013
2Agenda1st: Moneyball Overview2nd: Introduction to Moneysec3rd: Evidence-based Data for MoneysecHome Run: What can you do with this?Moneysec Jared Pfost Brian Keefer Chief Executive Officer Security Architectideas borrowed from: Third Defense Leading SaaS Security Company
3 Moneyball• Reshaping a laggard team into a world-class winner– with one of the lowest budgets• “Willingness to re-think baseball: how it is managed, how it is played, who is best suited to play it, and why. “– Michael Lewis, author – Which statistics are most correlated to winning games – Focus on these success metrics and actually use them for recruiting, player development, and game-time decisions. – Full management commitment
4 Correlation The degree that two measurements or variables show a tendency to vary together negative Car Fuel Efficiency zero positive # of Car AccidentsCar Value Car Mileage Car Body Color Car Insurance Cost
5 The Moneyball Formula (hits + walks) x total bases runs created = (at bats + walks)Bill James’ formula:“…it implied, specifically, that (professional baseball people) didn’t place enough value on walks and extra base hits . . . And placed too much value on batting average and stolen bases.”“…The details of James’s equation didn’t matter all that much…What mattered was (a) it was a rational, testable hypothesis; and (b) James made it so clear and interesting that it provoked a lot of intelligent people to join the conversation.” p. 78 Metric: On-base Percentage instead of Batting Average Source: Michael Lewis - Moneyball
6Offensive strategy Defensive strategy Source: Michael Richmond
7Moneyball Formula in Action (hits + walks) x total basesruns created = (at bats + walks) 2011 (1,556 + 571) x 2,360runs created = = 794 (5,635 + 571) 787 actual
9 Oakland A’s• Teams bid for players in Free Agent market• Start of 2002 A’s had payroll ~$40M*• NY Yankees payroll ~$126M*• So poor teams have no shot at winning, right? *From “Moneyball” 1999-2001 Team Wins Losses Est Payroll** NYY 280 203 $257M OAK 280 205 $70M **Estimate from baseball-reference.com
10 Billy Beane• GM Billy Beane defied convention – He didn’t follow “best practices” – He made data-drive decisions – Hired Paul DePodesta“The evaluation of young baseball players had been taken out of the hands of old baseball men and placed in the hands of people who had what Billy valued most . . . a degree in something other than baseball.” p. 41“What you don’t do is what the Yankees do. If we do . . . We lose every time, because they’re doing it with 3 times more money than we are . . . The poor team was forced to find bargains: young players and whatever older guys the market had undervalued.” p. 119
11 Traditional Baseball• Talent is evaluated by scouts• Scouts are usually washed-up players• i.e. “Industry veterans” or “experts”• Value statements are largely subjective
12 A few word about scouts…Should we sayoutdated?
13 Next-gen Baseball• Started in 1977• Bill James wanted to see what influenced game outcome – Realized stats created in 1859 didn’t properly attribute events
14 Key lessons• Don’t make emotional decisions – Recognize your bias• Collect the “right” data – Look for correlations• Set reasonable criteria for success – Don’t overspend
15 Moneyball Metrics• Not all measures are equally important (80/20)• Watch out for “analysis paralysis”.• What are the most meaningful measures?• Less is more. Allows focus.• What processes are intuitively managed that could be better run based on statistical facts?• How would this affect your culture and how you hire, develop, promote, and field a security team based on these insights?
16 Moneyball Metrics• Key to the value of Moneyball Metrics True potential = not just measure, but also: – Track and trend performance over time – Benchmark performance vs. self (and peers) – Identify strengths and weaknesses – Diagnose - understand the interrelationships and underlying drivers of performance – Prescribe actions to improve performance – Establish performance goals for both individuals and overall security team – Become “World-Class” All metrics are worthless – unless you do something with them.
17 What can we learn from Moneyball?“Why didn’t anybody do this before?” Moneysec A practical approach to security investments
Problem Statement• Every organization is competing withattackers• Most don’t have Fortune 50 budget• How can you be effective?
20 Conventional “Wisdom”• “Everyone knows” that you need – Firewall – Anti-virus – Change passwords frequently – Prohibit social networking – Etc.
21 Do they work?• Port 80 goes through the firewall• Anti-virus misses custom malware• Stolen passwords used quickly• Social networking key to marketing and employee satisfaction
22 Clearly this is not working• Do we actually want a new strategy?• What does winning look like?• How do we get started? • Applying new model • Use the security stats that are out there – Verizon Data Breach Investigations Report – Trustwave Global Security Report – Ponemon Institute Cost of Data Breach Report and Research Studies – Manidant M-Trends Report – Symantec reports – CSO Magazine Global State of Information Security Survey – Metricon
23Models for Research and Investment theory development theory interpretation hypothesis data hypothesis testing • Inductive • Deductive – starts with data available – starts with theoretical – concludes with possible framework hypotheses – concludes with logical – bottom up data driven deductions approach – theory driven approach
24 Trends Motivating EventFix what’s broken• Hacks and compromise – Fix what’s already been hacked at your company• Understand security trends for your industry – Small and Medium Business beware – Banks – DDOS, fraud, botnets, and web authentication attacks – Hospitality – Credit cards, point of sale systems, Wifi, and admin accounts – DIB – RSA hack, Adobe/Microsoft 0days, remote access, and phishing – News – NYT/WSJ, phishing, Oracle Java 0days – Retail – Open Wifi, POS – LEA – 0day, social engineering and phishing – Credit card processors – Phishing and egress traffic – Websites – Sony (SQL Injection) and exclusion from core security• Evaluate your threat landscape to prioritize your treatment strategy
25 2012 Verizon Data Breach Investigations Report (DBIR)• 5th year of public releases – Starting in 2008 – 7 total reports (mid-year supplementals in 2008 and 2009)• Dataset now contains: – 8 years of data
262012 Verizon Data Breach Investigations Report (DBIR) 2012 Trustwave Global Security Report In those cases in which an external entity was necessary for detection, analysis found that attackers had an average of 173.5 days within the victim’s environment before detection occurred. Conversely, organizations that relied on self-detection were able to identify attackers within their systems an average of 43 days after initial compromise.
272012 Verizon Data Breach Investigations Report (DBIR)
282011 Verizon Data Breach Investigations Report (DBIR)
29 2011 Verizon Data Breach Investigations Report (DBIR)• Eastern Europe takes a commanding lead Who are the (external) bad guys?
30 2011 Verizon Data Breach Investigations Report (DBIR)• Quite a jump in regular users (was 51% last year)• % of breaches involving Finance staff doubled• % of breaches involving executives increased from 7% to 11% Who are the (internal) bad guys?
312011 Verizon Data Breach Investigations Report (DBIR) Customized Malware
322011 Verizon Data Breach Investigations Report (DBIR) Hacking Methodologies
33 2011 Verizon Data Breach Investigations Report (DBIR)• 11% of breaches employed some level of social engineering (down from 28% last year) Social Engineering and Physical Security Trends
342011 VZ Data Breach Investigations Report and Moneysec Device Patch & Config Monitoring
36 Confidential Documents at Risk StudyKey Findings• The negligent insider seems to pose the greatest risk because of poor internal controls and improper accessing and transferring confidential documents.• Sensitive documents are most at risk at the document and file level.• Governance tasks or procedures for privilege and access to sensitive documents need improvement.• Budget and compliance monitoring procedures are the critical success factors to achieving good internal controls and governance procedures.
37 Information Leakage• Ex-employees, partners, and customers• Over 1/3 due to negligence• Increasing loss from external collaborationPercentage cause of data breach Estimated sources of data breach 2010 CSO Cost of Data Breach report Global State of Information Security Survey Ponemon Institute 2010
38 Evidence-based Investments• Don’t protect everything – Protect most important data and services• Small, targeted investments – Pass the Red Face Test – Reduce Investments through integration • Antivirus - Forefront • Full Disk Encryption – Bitlocker – Patch and harden configs – Change default credentials and restrict/monitor privileged accounts – Increase focus on closing the detection and response gap – Secure development through application testing and code reviews – Increase awareness and change culture • Social engineering and phishing • Destroy what you don’t need• Treat all endpoints as hostile• Collapse to cores – Protect cores really, really well• Collect your own metrics and apply security as necessary
39 Moneysec Metrics• You can measure anything! Even intangibles.• You don’t always need to be exact.• Reducing uncertainty adds value.• Having just some data can go a long way to help a decision maker. Source: Douglas Hubbard• Use industry data – You’re not a beautiful snowflake – Apply what correlates• Moneysec metrics – Measure what’s easy – Set targets – Justify as needed – Optimize Cost vs. Target• More metrics: – Moneysec Evolved – Metricon
40 ConclusionQuick attempt to grossly oversimplify the theme:•Billy Beane developed new metrics to win for less.•Use industry security performance data to help prioritizespending to win for less.•Internal information security metrics can be applied along withindustry security performance data.•Measure well. Gather evidence.•Determine if you need more or less.•Apply inductive and deductive approaches to make betterinvestments.•Use the evidence you have for better investments.
41 Questions & AnswersPhil AgcaoiliCo-Founder & Board Member, Southern CISO Security CouncilDistinguished Fellow and Fellows Chairman, Ponemon InstituteCo-Chair, Communication Sector Coordinating Council (CSCC), Cybersecurity Committee – Technology Sub-CommitteeFounding Member, Cloud Security Alliance (CSA)Inventor & Co-Author, CSA Cloud Controls Matrix, GRC Stack, Security, Trust and Assurance Registry (STAR), and Open Certification Framework (OCF) @hacksec https://www.linkedin.com/in/philA