On February 12, the National Institute of Standards and
Technology (NIST) released a voluntary cybersecurity framework
designed to address the heightened business and security risks that
come from increased reliance on information technology and
industrial control systems.* The growing
interconnectivity of these systems and their increasing use to
deliver critical business services and support business decisions
have exacerbated the potential impact of a cybersecurity incident
on an organization's business, assets and reputation.
NIST's recommended cybersecurity framework urges banks,
utilities and other critical infrastructure operators to adopt a
set of industry standards and best practices to manage
cybersecurity risks. The framework is the result of collaboration
between government and the private sector, and it encourages
organizations to consider cybersecurity risks as part of their
overall risk management processes. It augments requirements already
in effect for some businesses, such as the North America Energy
Reliability Corporation's Critical Infrastructure Protection
plan applicable to electric industry participants. For financial
services providers, NIST's recommended framework has been
endorsed by the Financial Services Sector Coordinating Council for
Critical Infrastructure Protection and Homeland Security (FSSCC).
Established in 2002, the FSSCC is the coordinator for financial
services providers for the protection of critical infrastructure,
focusing on operational risks.
NIST's recommended cybersecurity framework is designed to
provide common terminology to discuss cybersecurity issues and
describes mechanisms for organizations to:
- evaluate their current cybersecurity readiness;
- articulate their cybersecurity goals;
- identify and prioritize opportunities for improving their cybersecurity procedures;
- assess progress toward their cybersecurity goals; and
- communicate about cybersecurity risks both internally and externally.
There are three parts to the cybersecurity framework: the
Framework Core, the Framework Profile and the Framework
Implementation Tiers. The Framework Core provides detailed guidance
for developing a set of cybersecurity procedures that are common
across critical infrastructure sectors. The common standards,
guidelines and practices are designed to facilitate communication
about cybersecurity activities between an organization's
management and those implementing the organization's
cybersecurity systems. The Framework Core provides guidance and
best practices for five functions: to identity cybersecurity
threats; to protect critical information technology and industrial
control systems; and to detect, to respond to and to recover from
hostile cybersecurity events. The Framework Core identifies
categories and subcategories for each function.
The Framework Profile of an organization is based on the categories
and subcategories that the company selects for each function of the
Framework Core. Organizations can use their Framework Profiles to
determine their current state of cybersecurity readiness, describe
a desired state of readiness and identify opportunities to reach
this goal.
The Framework Implementation Tiers provide a method for
organizations to evaluate their level of risk and threat awareness
and to categorize the effectiveness of their security procedures.
The tiers range from Partial (Tier 1) to Adaptive (Tier 4).
Lower-tier responses are reactive and informal; higher-tier
responses are adaptive and integrated throughout an
organization's structure.
The NIST framework also includes recommendations on how
organizations can better protect individual privacy and civil
liberties through integration of privacy controls into their
cybersecurity and risk management structures.
The cybersecurity framework is technology-neutral and relies on
standards, guidelines and practices currently in use in the private
sector. The framework seeks to create global standards that may be
used across borders. In order for the framework to remain
effective, NIST indicates that it will update and revise the
framework as new practices, technologies and cybersecurity threats
develop.
While the framework is described as voluntary and is targeted at
selected industries, businesses in all industries should anticipate
that their compliance programs will be measured against it and
would be well-served to assess their cybersecurity readiness with
reference to the framework. Jim Bowers, the head of Day
Pitney's Compliance Risk Services group, has written in greater
depth about growing cyber threats and NIST's efforts to develop
the cybersecurity framework. For more information on this topic,
see his article "Mitigating Data Breach Liability: In Search of a
Best Practice."
Our team would be pleased to assist you in developing a
cybersecurity readiness plan consistent with the newly issued
cybersecurity framework.
*NIST Framework for Improving Critical Infrastructure Cybersecurity
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
