Speaking at the Cyber Future Dialogue in Davos during the World Economic Forum (WEF)

CFD2020-SpeakerCard-CyberRisk_Panel_01

I’m very excited to announce that I will be speaking at the Cyber Future Dialogue in two weeks in Davos, Switzerland during the World Economic Forum. This is going to be an amazing opportunity to converse with distinguished leadership from around the world on the necessity of and practical means to operationalize cyber risk quantification and the FAIR risk methodology.

 

RSAC 2019 Virtual Pen Testing Slides Available

With RSA completed over two weeks ago, and an ensuing sickness, I realized I haven’t posted about my presentation with Joel Amick. I thoroughly enjoying sharing this work with the RSA audience and had some great conversations afterwards. I think agent-based modeling (ABM) has some interesting use cases in cybersecurity and risk management. I think that in organizations that have data sets about their assets covering control strengths, threats, and losses, there is valid application of ABM to provide some attacker forecasting.

The presentation slides have been posted here. The slides are static and don’t show the video of the model, however the presentation was recorded and the video has been posted on RSAC onDemand for those that attended. When it’s opened to the rest of the world, I will post that.

 

Presenting on Agent Based Risk Modeling at RSA Conference Next Week

RSA Conference is next week and I’m excited to share that I will be presenting on some work a a colleague and I have done on building an Agent-Based Model (ABM) using FAIR risk data.

This should be an interesting discussion, so please join me next Wednesday at 2:50PM Pacific in Moscone West 2011.

I also served on the program committee this year for the GRC track and I can report that this year’s risk and metrics presentations will be insanely good! You are all in for a treat. If you will be in SF next week for the conference, be sure and look me up.

 

Jack and Jack talk Risk Modeling at Cyber Risk NA

I had a great time this week at Risk.Net’s Cyber Risk NA conference this week. I moderated a panel on Modeling Cyber Risk with Jack Jones (EVP RiskLens), Ashish Dev (Principal Economist at the Federal Reserve), Manan Rawal (Head of US Model Risk Mgmt, HSBC USA), and Sidhartha Dash (Research Director, Chartis Research).

We only had 45 minutes and ran out of time before we could get to all the topics I had on my list, so I wanted to included some notes here of things we covered:

  • I opened with a scenario where I asked the panelists if they were presenting to the board would it be more honest to disclose the following top risks: 1) IOT, GDPR, and Spectre/Meltdown or 2) Our Top Risk is that we aren’t modeling cyber risk well enough. Most everyone chose option 2 :-)
  • We talked about whether there was a right way to model
    • Poisson, Negative Binomial, Log Normal
    • Frequentist vs Bayesian
  • Which model for scenarios makes more sense: BASEL II categories or CIA Triad?
  • Level of abstraction required for modeling
    • Event funnel: Event of interest vs incident vs loss event
    • Top Down vs. Bottoms Up
  • What are key variables necessary to model cyber risk (everyone agreed that some measure of frequency of loss and impact/magnitude are necessary)

Things we wanted to get to but ran out of time:

  • What is necessary to get modeling approved and validated by Model Risk Management
  • Should you purchase an external model or build your own?
  • Can we use our Cyber Models for stress testing/ CTE calculations?
  • Do we combine cyber scenarios with other operational risk scenarios?
  • One audience question that we ran out of time for was “How was the FAIR approach different than LDA & AMA and how does it address their weaknesses (Frequency and severity correlation)”
    • This was a good question but to be fair, FAIR wasn’t designed to be a stress testing model. However, many of the inputs used for FAIR are also used for LDA and AMA.
  • There were lots of other audience questions about the use of FAIR which is always encouraging!

Cyber Risk Cassandras

I wrote this latest bit for the @ISACA column after reading Richard Clarke’s book and trying to rationalize how it applies to cyber risk. It’s overly easy to predict failures and impending doom at a macro level, its much harder to do it at the micro level, which is infinitely more interesting and useful.

You can read more here

Cyber Deterrence

I was reading up on cyber deterrence today and ran across this little gem in relation to nuclear deterrence:

Because of the value that comes from the ambiguity of what the US may do to an adversary if the acts we seek to deter are carried out, it hurts to portray ourselves as too fully rational and cool-headed. The fact that some elements may appear to be potentially “out of control” can be beneficial to creating and reinforcing fears and doubts within the minds of an adversary’s decision makers. This essential sense of fear is the working force of deterrence. That the US may become irrational and vindictive if its vital interests are attacked should be a part of the national persona we project to all adversaries.

–Essentials of Post Cold War Deterrence (1995)

Source: http://www.nukestrat.com/us/stratcom/SAGessentials.PDF