Data breaches and cyber incidents made headlines again recently with the announcement that 50 million Facebook accounts were compromised as well as the SEC’s issuance of sanctions against a dual registrant stemming from the firm’s response to phishing attacks. So it was both timely and fitting that U.S. intelligence community veteran Jeff Welgan, Executive Director and Head of Executive Training Programs at Cybervista, kicked off the Ascendant/CSS compliance conference in San Diego with an interactive workshop on incident response, “Cyber Incidents and Response: Keeping Cool in the Line of Fire.”
Joining Mr. Welgan was E.J. Yerzak, Director of Cyber IT Services at CSS, who provided context for the wargaming workshop by discussing the current cybersecurity landscape. Mr. Yerzak noted that phishing continues to be the leading attack vector as people are the biggest cyber risk and even smart people can make mistakes when it comes to security awareness. In addition, malware continues to evolve as hackers try to stay one step ahead of detection capabilities.
Since it only takes one employee to compromise a firm, testing your incident response plan with tabletop exercises and wargaming under time constraints is key to avoiding complacency and maintaining the ability to think critically during a crisis. Mr. Welgan gave each attendee a very specific role to play at a fictitious firm, placing them directly in the data breach scenario as it unfolded, and challenged attendees to step outside their comfort zones in making critical decisions quickly while balancing competing business priorities and incorporating new facts.
Attendees rose to the challenge and helped navigate their fictitious firm through its incident response and recovery efforts. And in the process, the wargaming workshop revealed some helpful takeaways for firms to consider going forward, including:
- Paying a bitcoin ransom is generally not a good idea, but some firms do pay it if the cost-benefit analysis tilts in favor of that action
- Cyber incidents can rapidly increase in scope and complexity as additional facts are learned
- The costs of a cyber incident can range from financial payout (ransom) to downtime, lost productivity, forensic investigation costs, and repair and recovery costs, as noted in the SEC’s Interpretive Guidance on Cybersecurity Disclosure from Feb. 2018
Coordination of response efforts involves multiple roles and perspectives, but ultimately, someone must make a decision and be sufficiently authorized to put it in motion.