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A recent
flurry
of blog
posts
by some very smart people has reminded me of how in my former life at Microsoft,
I often found myself in meetings whose agenda included tallying up the
so-called "digital assets" related to a given project.
For the uninitiated, the "digital asset" is the starting point in
pretty much every formal and semi-formal IT risk analysis exercise, to
wit: What are we protecting, after all, if not assets? What uniquely
digital threats imperil these assets, and how awful would it be if any of those
threats should be realized, and what are the potential mitigations for each
threat, and what is the cost of each contemplated mitigation, and can I somehow
avoid being summoned to any more of these meetings, or do I need to step up my
search for a new position in the company?
Granted, as a starting point for getting a handle on your
security spend, it seems only reasonable to boil everything down to a finite
list of items. The obvious next step is,
let’s appraise the items in our list according to some kind of valuation scheme,
and start sorting. There’s plenty of methodologies to pick from.
Except that we’re not insuring
Tina Turner’s legs here. I contend that there is no useful relationship between
asset value and loss-per-incident.
With that claim in mind, let’s review the types of costs
associated with typical real-world hacking incidents, and ask ourselves which
of these costs will vary according to some pre-estimated value of the compromised
digital assets:
* Engagement of incident response specialists
* Damage to reputation / loss of future business
* Loss of business advantage (e.g., leakage of details concerning payroll, pending deals, R&D, etc.)
* Direct financial loss (e.g., fraudulent transactions)
* Disruption of regular business operations
* Fines and penalties
<!--[if !supportLists]-->Actually, I wrote that list in order, ranging from “no
relationship to asset values” to “perhaps some vague, tenuous relationship.”
Sure, the cost of an hour’s operational disruption might be
estimable in advance, especially when service level agreements are in place. But when we attempt to quantify the cost of
downtime, are we even talking about assets
any more?
And is it possible that when we fetishize over
the valuations of individual data assets, we’re taking our eyes off the
loss-avoidance ball?