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Thread: Study Shows IT Security Holds The Key To Compliance




Study Shows IT Security Holds The Key To Compliance
user name
2006-12-05 10:33:15
http://www.informationweek.com/news/showArti
cle.jhtml?articleID=1966

01378

Given Symantec were part of this group recomending not
spending 
money on expensive consultants I guess they are disbanding
their 
own security consulting team?
By Larry Greenemeier
InformationWeek
Dec 4, 2006

Companies most likely to successfully navigate today's
regulatory 
environment need to automate IT security functions rather
than blow 

their budgets on pricey consultants or services, and they
need to 
do more frequent auditing of the systems and data security.
So says 

the IT Policy Compliance Group Monday in its latest report
on the 
relationship between regulatory compliance and IT security 
spending.

The group, formed last year by the Computer Security
Institute, the 

Institute of Internal Auditors, and Symantec and formerly
known as 
the Security Compliance Counsel, began its study assuming
that 
larger organizations had more resources to throw at any
given 
compliance project. While this is true, they were surprised
to 
learn that larger organizations don't necessarily perform
better 
than their smaller counterparts when it comes to actually
achieving 

compliance, says Jim Hurley, managing director of the IT
Policy 
Compliance Group and a director of research for Symantec.
"It's not 

a matter of resources, it's what you do with them," he
adds.

Nothing has driven spending on IT security products and
services 
over the past few years more than the need to comply with a
flurry 
of new regulations flowing out of Washington, including the
Health 
Information Portability and Accountability Act,
Sarbanes-Oxley, and 

Gramm-Leach-Bliley. Last week saw the debut of the newly
amended 
Federal Rules of Civil Procedure, which force companies to
better 
manage electronically stored information that can be used as

evidence in civil court cases. There have been 114,000 new 
regulations introduced in North America alone since 1981,
Adam 
Losner, VP of finance for the Securities Industry Automation
Corp., 

said at a September IT Policy Compliance Group meeting at
the 
Interop show in New York. Next year, expect a federal data
breach 
notification law to be added to the list.

The IT Policy Compliance Group's study, which surveyed the
spending 

patterns of 876 organizations, found that those most
successful in 
meeting compliance demands are spending $1 on IT security
for every 

$30,000 in revenue, assets under management, or agency
budget, 
depending upon the type of organization. Those lagging
behind in 
terms of compliance are spending $1 on IT security for every

$90,000.

Only about 11% of the organizations surveyed reported that
they've 
suffered fewer than three compliance problems in the past
year. 
Nearly 70% experience between three and 15 IT compliance
problems 
annually, while the rest had to correct as many as hundreds
of IT 
compliance deficiencies in a single year, a situation that
can lead 

to fines as well as the siphoning of resources from other
important 

IT projects.

Hurley says a good rule of thumb for compliance spending is
to 
allocate more than 10% of the overall IT budget on security 
systems, including configuration change management systems,
as well 

as auditing, monitoring, and reporting tools. Other helpful 
investments include software for managing IT security
policies, 
standards, controls, and documentation. Another key to
successful 
compliance, the group found, is regular auditing. Those that

audited the security of their systems monthly were far more 
successful at achieving compliance than those who audited
only once 

annually.

Hand in hand with this was the observation that
organizations are 
better served spending their security dollars on hardware
and 
software such as configuration and change management
applications, 
antivirus, user-access control systems, and reporting tools,
which 
facilitate more frequent audits, rather than spending the
money to 
hire more contractors and outside services. Organizations
with the 
fewest compliance problems are spending 9% more to automate
audit 
functions and 11% less on contractors and outside services.

IT leadership also is an important ingredient in achieving
and 
maintaining compliance. "At the board level, executives
want to 
know their level of risk related to compliance, so [chief 
information security officers], chief privacy officers, and
chief 
risk officers have to be able to connect spending on IT
security 
with meeting the demands of various regulations," says
Rocco 
Grillo, director of the security practice at risk-assessment
firm 
Protiviti, which Monday officially joined the IT Policy
Compliance 
Group.





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