Security Assessment Economics

June 12th, 2008 by rybolov

If you're new here and would like to see more of what I'm saying, you may want to subscribe to my RSS feed or have a look at my papers and presentations page for downloads of stuff that you can share or "borrow heavily from". You also might find my guidelines for posting comments interesting, especially if you're a government employee. Thanks for visiting and happy hacking!

I’ve spent a couple of days traveling around to agencies to teach.  It was fun but tiring, and the best part of it is that since I’m not teaching pure doctrine, I can include the “here’s how it works in real life” parts and some of the BSOFH parts–what I refer to as the “security management heretic thoughts”.

Some basic statements, the rest of this post will explain:

  • C&A is a commodity market
  • Security controls assessment is a commodity market
  • PCI assessment is a commodity market
  • Most MSSP (or rather, Security Device Management Service Providers) services are commodity markets

Now my boss said the first one to me about 4 months ago and it really needed some time for me to grasp the implications.  What we mean by “commodity market” is that since there isn’t really much of a difference between vendors, the vendors have to compete on having the lower price.

Now what the smart people will try to do is to take the commodity service and try to make it more of a boutique service by increasing the value.  Problem is that it only works if the customers play along and figure out how your service is different–usually what happens is you lose in the market simply because now you’re “too expensive”.

Luxury, Boutique, Commodity

Where Boutique Sits by miss_rogue.

Since the security assessment world is a services business, the only way to compete in a commodity market is to pay your people less and try to charge more. But oh yeah, we compete on price, so that only leaves the paychecks as the way to keep the margin up.

Some ways that vendors will try to keep the assessment costs down:

  • Hire cheaper people (yes, paper CISSPs)
  • Try to reduce the engegement to a formula/methodlogy (ack, a checklist)
  • It’s all about billability:  what percentage of your people’s time is not billable to clients? 
  • Put people on assessments who have tangential skills just to keep them billable
  • Use Cost-Plus-Margin or Time-Plus-Materials so that you can work more hours
  • Use Firm-Fixed-Price contracts with highly reduced services ($150 PCI assessments)

Now inside Government contracting, there’s a fact that’s not known outside of the beltway:  your margins are fixed by the Government.  In other words, they only allow you to have around a 13-15% margin.  The way to make money is that the pie is a much bigger pie, even though you only get a small piece of it.  And yes, they do look at your accounting records and yes, there are loopholes, but for the most part, you can only collect this little margin.  If you stop and think about it, the Government almost forces the majority of its contractors into a commodity market.

Then we wonder why C&A engagements go so haywire…

The problem with commodity markets and vulnerability/risk/pen-test assessments is that your results, and by extension your ability to secure your data, are only as good as the skills and creativity of the people that the vendor sends.  Sounds like a problem?  It is.

So knowing this, how can you as the client get the most out of your service providers? This is a quick list:

  • Every year (or every other), get an assessment from somebody who has a good reputation for being thorough (ie, a boutique)
  • Be willing to pay more for services than the bottom of the market but be sure that you get quality people to go along with it, otherwise you’ve just added to the vendor’s margin with no real improvements to yourself
  • Get assessments from multiple vendors across the span of a year or two–more eyes means different checklists
  • Provide the assessors with your own checklists so you can steer them (tip from Dave Mortman)
  • Self-identify vulnerabilities when appropriate (especially with vulnerabilities from previous assessments)
  • Typical contracting fixes such as scope management, reviewing resumes of key personnel, etc
  • Get lucky when the vendor hires really good people who don’t know how much they’re really worth (that was me 5 years ago)
  • More than I’m sure will end up in the comments to this post  =)

And the final technique is that it’s all about what you do with the assessment results.  If you feed them into a mitigation plan (goviespeak: POA&M) and improve your security, it’s a win.

Posted in Outsourcing, Rants, Risk Management, The Guerilla CISO | 4 Comments »

Some Thoughts on Comments to My Blog…

May 14th, 2008 by rybolov

I have a very disturbing trend with comments to my blog:  I don’t get any comments on the serious stories–only the “fun” posts.

This leads me to believe one of the following is at play:

  • I write succinctly and with authority and never make mistakes. (at least it helps to hope…)
  • Nobody knows the subjects that I talk about because it’s a niche to a niche.
  • I don’t sensationalize the news enough to make people want to comment.  Note that this is a radical departure from the mainstream media when it comes to security and government, where FUD-mongering is the norm.
  • People are scared of me because they think I’m intellectually and emotionally unstable and that I’m going to trash them if they comment.  =)
  • Government employees are afraid to put anything critical of their leadership in writing.
  • Like they say about the classified world, “Those who know don’t talk, those who talk don’t know”. (side note:  what am I saying about myself here?)
  • The First Rule of FISMA Club is that YOU DO NOT TALK ABOUT FISMA CLUB!!!111oneoneone
  • If it’s your first comment, you have to fight.

Blog Explanation in French

Blog Explanation in French by Stephanie Booth

Now the problem for me is that in order to make security in the government work, we need to change the culture of the people doing it.  IT and specifically security require a zero-defects approach, and this is counter to survivability in a political environment.  The only way we can do that is if I’m not the only voice preaching in the wilderness–I really do want people to tell me I’m full of it and give a good rationale.  =)

In the spirit of helping, this is the Guerilla’s Guide to Commenting on http://www.guerilla-ciso.com/

  • Everything in Moderation:  No big surprise–I moderate comments.  This is pretty much so I can keep the spam out.  I’ve only had one legitimate post that I deleted because it was personal in nature from a person who knew me in “a past life”.
  • Email is Semi-Anonymous:  If you post a comment using a bogus email address, I’m happy with it as long as the content is relevant and doesn’t look like spam.  The email address is really only so wordpress can track you and automagically approve your next post as long as the name and email match up.
  • Thou Shalt Remember the Chatham House Rule:  I do not repeat anything that was told to me in confidence.  Neither should you.  Yes, there are things I won’t write on here, like the conversation I had with [censored] from [censored] who confirmed that [censored]-[censored] is not yet final because [censored].
  • I’m Neither a Crook Nor a Cop:  I have yet to receive any kind of subpoena asking for subscriber or commenter information, nor do I send you stupid spam jokes because I know who you are.

I’ll end with one of my favorite army jokes:  “What’s the difference between a war story and a fairy tale?  A fairy tale begins with ‘Once upon a time’, war stories begin with ‘No sh*t, there I was’”.

Posted in Rants, The Guerilla CISO | 9 Comments »

Caught on Tape!

May 13th, 2008 by rybolov

A couple of weeks ago, Martin McKeay was in town and recorded an interview with me.  I wax poetically on my typical things–FISMA, risk assessment, anti-compliance.

The funny thing is, weeks later, I listened to myself and I actually sound like I know something…. Who woulda thunk it?  =)

Posted in FISMA, Risk Management, Speaking, The Guerilla CISO | No Comments »

Everybody Else Is Doing It So Why Can’t We?

May 8th, 2008 by rybolov

I’ve sat in on too many presentations lately.  After a couple of them, you start to think “Hey, I can do way better than that!”  And so I’ve been collecting my thoughts to get some presentations down and rehearsed.

Anyway, some sample topics I’ve thought up, hope you like them:

  • Security curmudgeon 101:  It all starts with electric shock and goes downhill rapidly
  • Contractors Never Go for Broke: how I learned to stop fearing unclear guidance and made a ton of moolah in the process
  • Who Moved My InfoSec Cheese:  What to do when the great big SOX cow in the sky dries up
  • Leadership Secrets of Attila the CISO: throwing dead bodies and the problem does create a solution!
  • $Racial_Slur in the Wire:  why your perimeter is massive pwnage once they get past it
  • The “S” in “SIEM” stands for “Suck”: learning how to deal with the limitations of security tools
  • Lessons from Language School: how I embraced the language and culture of our sworn enemies so that we could more effectively kill them in a bout of mutually assured destruction and why it seems so quaint in the new millenium
  • DAM Solutions: more than just the punch-line to analyst jokes
  • Data Reduction for Dummies: since the classification follows the data, if we get rid of it all, we don’t need to secure it
  • Physical and Environmental Protection for Packet Monkeys: learning why there’s a big red button on the wall of the data center next to the switches and what really happens when you push it

And, lo and behold, I am available to speak, always have been.  If you like an idea that I’ve put out there, put 3 squirrels on a park bench and I’ll give them a presentation.

Posted in BSOFH, Speaking, The Guerilla CISO | 5 Comments »

An Informal Study on the Literacy Level of Security Blogs–We All Get Pwned by Amrit

April 30th, 2008 by rybolov

OK, I saw this really cool widget on a blog somewhere.  It tests the literacy level of your blog and tells you at what level you write.  Sure, OK, I’ll bite.  Bloggers love bling, dontcha know?

The Genius Widget 

Fortunately for anybody who has eyes, the code that the site gives you to put the widget on your blog contains a SEO-spamming link.  Oh joy, it’s easily removable if you’re halfway knowledgeable.  But you still can use the textbox to feed urls to the machine.

Anyway, in the interest of science and all things egotastical, I submitted some sample security blogs and was highly surprised at some of the results.  My rundown on how particular sites rate:

Now if I check out Amrit’s blog tomorrow and he’s got a genius sticker displayed prominently on his site, I’ll take the blame and rage from the blogosphere.  It’s only fitting.

To be honest, I’m surprised I didn’t come in at the preschool level, what with my lowbrow sense of humor and all.  =)

Posted in Odds-n-Sods, The Guerilla CISO | 10 Comments »

Some Thoughts from a Week or so of Being “Proposal B*tch”

April 15th, 2008 by rybolov

I spent the last couple of weeks working on a proposal. It was the best of times, it was the worst of times. Hell, I don’t even know if the thing will even get read this year.

Anyway, on to the rants, that’s why you’re all here anyway. =)

#1 Don’t sell methodology. As a customer receiving a proposal, what I think when I get your methodology is that you don’t know my pain points enough to know how you can help me, so you give me a generic, templated proposal. As a contractor making the proposal, when I see that our proposal doesn’t have any real content, I wonder if we know the customer enough to actually pitch and win a deal.

#2 Small proposals are better as long as they’re relevant and answer what the RFP calls for. Don’t be afraid to chop out boilerplate-esque sections of the proposal.

#3 The Government wants way too much stuff in a proposal. It makes life refreshing and tasty when you cycle yourself back out into the private sector.

#4 Rybolov’s simple proposal format, blatantly lifted from the military:

  • Situation and Mission: what problem does the Client have? Demonstrate that you understand what they’re asking for.
  • Execution: This is what we’re trying to make the solution.  More here is better as long as it avoids being “fluffy”.
  • Service and Support: Assumptions, what we need to do the job.
  • Command and Control: What our management plan is, who our people are, and what our qualifications are.

Posted in Rants, The Guerilla CISO | No Comments »

My 2 Obsessions this Week

March 18th, 2008 by rybolov

#1:  How does a company/organization convert from doing compliance management to doing true risk management?  I think it’s the difference between being good and being great.  There are a couple of non-IT models that we can look at:  Emergency Room care transitioning into long-term care being a good one.

#2:  Compare and contrast the metrics that are collected as part of the annual FISMA reports with the major initiatives that we have on the table.  They don’t add up.

OK, I think it’s time to go fish this weekend, I’m having dreams about LoB initiatives.  Mini-me says I need to do something non-IT/security/$foo for the 8 hours of the day that I’m NOT working.

Posted in FISMA, Odds-n-Sods, Risk Management, The Guerilla CISO | 3 Comments »

« Previous Entries


Visitor Geolocationing Widget: