COLUMN: Many Struggle to Comply with Sarbanes Rules
296975
A flurry of companies may miss the deadline to comply with new regulations brought in after the corporate scandals of 2002, but the key for investors will be to judge how serious the underlying problems really are.
634234
Many of Corporate Washington's executives and board members have side deals with the companies they oversee.
587303
A government report highlights shortcomings in the Securities and Exchange Commissionâs efforts to battle insider trading and market manipulation.
609370
Businesses may be spending millions on expensive security technologies aimed at thwarting data leakage and compliance violations, but many companies are still failing to sufficiently address access controls for protected information and IT systems.According to the latest report from Ponemon Institute, most IT workers readily admit that their companies are doing a sub-standard job of keeping tabs on the level of access available to employees, temporary workers, and independent contractors.In Ponemon's 2008 National Survey on Access Governance, based on interviews conducted with roughly 700 IT professionals, 78 percent of those people surveyed reported that their employers are not regularly reviewing policies or tools that control admittance to their systems or information.The situation has resulted in an environment where many workers retain the ability to view sensitive data or manipulate IT systems that they should not be able to access based on their job responsibilities, researchers said.Some 69 percent of those interviewed said that their companies' access policies were either enforced poorly or not at all, with only 30 percent of respondents stating that their organizations go to the trouble of validating their guidelines.The overwhelming lack of proactive efforts to keep a handle on issues of access are somewhat shocking based on all the attention being given to data security and compliance issues over the last several years, and many business could greatly improve their overall standing simply by improving their policies and enforcement capabilities, said Larry Ponemon, chairman and founder of research firm."Traditional approaches, including homegrown technologies and manual management processes, have proven to be fraught with failure and risk. Unless enterprises acknowledge business as usual is failing, we believe rampant access mismanagement will continue to plague organizations," Ponemon said. "When it comes to access rights, companies don't want to constrain workers and make their jobs harder, but they have to manage things in a more systemic way that look at the risk versus the benefits, and many organizations are obviously having difficulties with that."Approximately 55 percent of those participating in the survey said that their employers' ability to grant access based on a worker's role and job function is either poor or nonexistent, including 42 percent who said that their companies have no policy to manage things in such a manner.The rapid pace of change in the responsibilities among today's workforce is one of the biggest hurdles that companies struggle to overcome, said executives with Aveksa, a maker of access control software that sponsored the Ponemon report."This entitlement drag issue is a major problem. IT organizations are under pressure and often either valued or devalued by business based on how quickly they deliver access," said Brian Cleary, vice president of Marketing for Aveksa. "Clearly, the findings here show that that while companies are doing a good job of providing initial or changed access, there is no automated way to go back and make a determination to understand if a workers' current level of access is appropriate."Lessons learned from Jerome Kerviel Issues of access control are of fundamental importance to corporate risk management, perhaps best exemplified by the recent reports of the activities of Jerome Kerviel, a stock trader at French firm Soci?t? G?n?rale who is accused of losing nearly $8 billion of his company's capital in unapproved transactions carried out by circumventing rules built into the brokerage's IT systems.Had Soci?t? G?n?rale been actively monitoring the access controls for its transactional systems, Kerviel likely would have been caught long before he gambled away such a stunning amount of money, the experts contend.A major factor contributing to the continued loopholes in access management is a lack of support for improving policies and applying technologies used to govern the issue by senior management in many companies, according to the report. Some 74 percent of respondents indicated that senior management in their companies does not view access governance as a strategic security imperative. "It seems that the perception is that it's still tough to get senior executives to sign off on the necessary funding, but situations like Soci?t? G?n?rale may help prove how big of concern this really needs to be," said Ponemon.Another major contributor to the problem is the need for cross-organization collaboration, which complicates issues of access dramatically.And while 83 percent of those people responding to the survey said that collaboration among business units, audit and compliance groups, and IT security departments is vital to keeping their operations in line with government regulations, 57 percent said those teams never partner to oversee access issues."This has to be an area of great concern, because if companies consistently score poorly on compliance audits it's been proven that this actually starts to diminish their reputation and brands," Ponemon said. "And as more organizations suffer losses, there will likely be new regulations put in place that make it even harder to operate; most businesses I know don't want more regulations, but if more people fail to create their own controls, more regulators will get involved."
483736
No one in the business world wants to be held responsible for a breach of sensitive corporate information, but gaining the level of support necessary to allow DLP (data leakage prevention) technology to work effectively remains tricky, customers and vendors confirm.Unlike traditional security technologies that have operated largely within the confines of IT departments and network management teams, DLP projects must include participation from almost every corner of the organizational chart to succeed, according to experts who have worked with the tools.From all the different business units that need access to protected information to human resources departments tasked with following up on potential violations to the highest levels of business management, the issue of data leakage is so pervasive that nearly everyone in a company needs to be involved on some level for critical content to stay under wraps.For DLP technology to have its intended effect, every employee needs to be continually educated about company policies that must be policed aggressively and attached to real consequences for violators, customers said. Simply throwing products at the problem won't work, they claim, because DLP is as much about building policies as it is about embedding IT controls."We have HIPPA considerations to uphold, we don't want to be in newspaper, and we don't want to be embarrassed in today's world for having exposed data accidentally or otherwise -- but it's not an overnight process," said Charles Hibnick, chief systems security architect at AvMed, a large HMO in Florida. "Even though we've been working with compliance regulations for years, embracing DLP is still a cultural change that demands involvement from a lot of people to work."As part of its effort to roll out its DLP program around technology provided by Palisade Systems, AvMed was forced to create a corporate steering committee that included everyone from C-level executives to its HR and compliance officials and even its external legal counsel.If a business is attempting to create a system where employees are expected to follow specific data-handling rules and be held accountable to real penalties when they have violations, all of those parties must be involved, Hibnick contends. "We in IT had to hook up with HR and compliance to make sure that our plans specifically included a review of how the DLP product would be used and ensure that they were buying into the process," he said. "Then the HR director had to communicate with our external counsel to make sure that we were within our appropriate boundaries with everything that we wanted to do and then run it all by the board."Once the plan had been established and the technology's use was approved, one of AvMed's most visible business vice presidents authored a letter to all of the company's employees informing them of the new policies and how they might be punished for multiple infractions, such as sending out sensitive data repeatedly in unencrypted e-mails.The letter was received by employees with some level of concern over "big brother" type monitoring of their work, but making its policies and penalties clear has been key to AvMed's success in keeping its data better protected, Hibnick maintains."You'll always get feedback from users, but when you have senior executives including the CIO saying this work needs to get done, you're not going to get a lot of kickback," he said. "I'd say the two most important pieces of doing this right are aligning the right team to drive it from the top down and making sure that everyone reads that letter and understands the role they play in helping us protect the data."DLP's cooperation requirement in the real world Since getting its system up-and-running and ensuring that employees knew what was happening over one year ago, the company has experienced only a dozen or so incidents that forced it to warn individual users or send reports to those workers' department heads, the IT leader said.Even vendor representatives, such as Palisade Chief Executive Kurt Shedenhelm, concede that the challenging politics of a DLP project often outweigh the technical issues that come into play when working out all the complex data-handling rules that his company's systems are employed to enforce.Some companies struggle to achieve the right level of executive buy-in to force business unit leaders to play ball, while others don't go to great enough lengths to ensure that workers have been sufficiently re-trained to understand new policies, he said. "This issue of internal politics, of who is responsible for protecting the data, who is responsible for educating the end-user, and who is ultimately responsible for enforcement, that's actually the hard part," Shedenhelm said. "In a lot of companies, I think you might find that it's hard to get the business units, HR, and IT people that need to be involved on the same page, but you can't really do DLP without that."In some companies, especially large enterprises, multiple DLP projects may only be put under the domain of IT security and compliance teams, making it harder for those groups to keep their efforts in step without overwhelming end-users.From the issues relating to which business units ultimately maintain responsibility for specific sets of data and who is tasked with enforcing policies, things can get too complex very quickly, he said. "In larger enterprises, where you often have multiple projects looking at DLP from perspectives of intellectual property, compliance, and customer data and information spanning multiple business units, that's where you run into problems," said Shedenhelm. "One of the biggest issues we see is with trouble discerning who is ultimately responsible for handling violations; sadly, in some cases, people clearly don't want to know if violations are occurring on the business side, because then they will be forced to respond."Other experts agreed that the size of an organization often plays directly into its ability to make DLP work with issues of enforcement standing as central disputes.A tug-of-war can break out between security teams tasked with enforcing DLP and those business unit that want unfettered access to data to help do their jobs, according to some industry players. "That's one of the big problems with DLP in general -- organizations are often quite hesitant in enforcing policies, especially when it comes to any notion of blocking secure content and getting in the way of the business," said Uzi Yair, CEO of DLP vendor GTB Technologies. "Businesses want people to be able do their work and don't want interference, but on the other hand, they know they need to weigh that against any loss, which could cost an organization a lot of money these days," he said. "I think it's always going to be about this tradeoff, enforcement versus the fear of slowing down business opportunities, but people need to understand that they all play a certain role."
586807
It doesn&#39;t seem to matter when corporate directors get tangled in business scandals or are accused of sketchy oversight -- many still get to hold on to their jobs no matter what.
247415
Congress and federal regulators need to get with the times.
374291
Thereâs a common nightmare haunting CISOs (computer information security officers) that features a glance at the morning paper, and 72-point banner headlines with the name of their employer and the words âLOSTâ and âCUSTOMER DATA.â
15437
Like cicadas, debates about corporate governance pop up periodically with a great deal of whir and buzz. In 1992, for example, the business community protested Securities and Exchange Commission Chairman Richard C. Breeden&#39;s push for ...
294185
Things are pretty informal at this organization, and network security isn't exactly tight. So when the head finance guy needs a little work done on his network account, IT admin simply asks what his password is.
592494
As information security threats have grown more lethal in the past decade, many senior executives still remain in the dark when it comes to protecting their organizations.
108461
The Electronic Data Systems contract to manage the U.S. Navy/Marine Corps Intranet has been plagued by problems and earlier this year prompted an inquiry from the SEC.
255532
Vulnerable areas of CPA funds spark questioning
755819
A fine levied against Bear Stearns for failing to detect fraud in a hedge fund customer has struck fear in the heart of Wall Street.
643031
Management is trying to turn things around, but the company's paying for past mistakes.
713463
Threats to data security are mounting, especially from within organizations, but top executives aren&#39;t helping their companies keep pace, a new study has found.
431079
Resisting the temptations of the mutual-fund performance chase isn't as easy as it may look.