IT Risk Management - the right posture

ENTERPRISE IT RISK MANAGEMENT“EXPLORING THE RIGHT POSTURE”

PARAG DEODHAR27 JULY 2012 BANGALORE27 JULY 2012 ‐ BANGALORE

EVOLUTION OF IT WITHIN THE ORGANISATIONEVOLUTION OF IT WITHIN THE ORGANISATION

TRANSFORMERENABLER

TRANSFORMER

SUPPORT TEAM

27 July 2012 PARAG DEODHAR 2ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM

ENTERPRISE RISK & ITENTERPRISE RISK & IT 

• IT is now CORE to Business• Top 3 areas which Audit Committees want to spend more time on  (Source: KPMG Survey)

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 3

IT RISK MANAGEMENT IS MUCH MORE THANIT SECURITY

N li i d i f i i I ll IT l d• Not limited to information security. It covers all IT‐related risks, including:• Late project deliveryLate project delivery• Not achieving enough 

value from ITC li• Compliance

• Misalignment• Obsolete or inflexible

IT architecture• IT service delivery

problemsp

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 4

IT RISK DOES NOT EMANATE FROM THE IT DEPARTMENT ALONE

• Mergers and Acquisitions• Purchasing software as a service• Investing in application enhancements• Outsourcing and offshoring• Outsourcing and offshoring• Integrating diverse applications

i S li k C– Business Partners, Suppliers, Banks, Customers…

• End Users• Consultants and Auditors!!!

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 5

WHO OWNS IT RISK?WHO OWNS IT RISK?

• IT Risk Management ‐ Organisation Structure & Reporting line– IT team– Risk Management Team– External Vendors– Group Team

WHO’S NECK IS ON THE LINE WHENDISASTER STRIKES?

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 6

CIO REPORT TO THE AUDIT COMMITTEECIO REPORT TO THE AUDIT COMMITTEE(Source: KPMG Survey)

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 7

IT RISK UNIVERSEIT RISK UNIVERSE

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 8

EMERGING IT RISKS IN THE BORDERLESSENTERPRISE

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 9

MANAGING IT RISKSMANAGING IT RISKS

N h i d• New threats are emerging every day• Basic measures like – Anti‐Virus, Firewalls are no longer 

enoughenough• Tools like SIEM, IPS, DLP, DRM… are now standard 

requirementrequirement • Only tools are not enough, continuous updates, 24x7 

monitoring and response is requiredmonitoring and response is required• Do you have the resources – money, time, human 

resources???• What is your risk posture? What do you tell the Board? • How do you manage compliance?

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 10

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GUIDING PRINCIPLESGUIDING PRINCIPLESSource: ISACA

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 11

IT RISK MANAGEMENT FRAMEWORKIT RISK MANAGEMENT FRAMEWORK•Responsibility and accountability for risk

Source: ISACA

accountability for risk•Risk appetite and tolerance•Awareness and communicationRi k lt•Risk culture

• Key risk indicators (KRIs)•Risk response definition and prioritisationprioritisation

• Risk scenarios• Risk scenarios•Business impact descriptions

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 12

IT RISK MATURITY MODEL TO ASSESS POSTUREIT RISK – MATURITY MODEL TO ASSESS POSTURESource: ISACA

27 July 2012 ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM PARAG DEODHAR 13

Its not a Goal But a journeyIts not a Goal – But a journey…

THANK YOUTHANK YOU27 July 2012 PARAG DEODHAR 14ENTERPRISE IT RISK MANAGEMENT COLLOQUIUM