2009 04 02 Larry Clinton Supply Chain Presentation at the NDIAs DIB CIP Conference

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    Larry ClintonPresident

    Internet Security [email protected]

    202-236-0001

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    ISA Board of Directors

    Ty Sagalow, Board Chair; President innovation Division ZurichInsurance

    Mike Hickey, Board Vise Chair, VP Government Affairs and nationalSecurity Verizon Corp.

    Tim McKnight, VP & CSO Northrop Grumman Jeff Brown, CISO Information Security Raytheon Charlie Croom, VP Cyber Security Solutions, Lockheed Martin Eric Gureno, CIO, Bank of new York/Mellon Financial Pradeep Khosla, Dean, School of Computer Sciences Carnegie Mellon U Lawrence Dobranski, Security Manager, Nortel Mark Antony Signorino, Chief Technology Nat. Assoc Manufacturers Joe Buonomo, Pres. Direct Computer Resources Inc.

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    Our Partners

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    ISA Mission

    Integrate technology with

    economically practical business

    considerations and public policy tocreate a sustainable system of cyber

    security

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    National Risk Continuum

    Consequence

    Very low Very high

    Nati

    on-state/unlimitedresources

    Nation-state/terrorist

    limitedresources

    Nation-state/

    Stea

    l

    Crim

    inal

    gang

    Verylo

    w

    HackersProje

    ctpower/damageordestroy

    Projectpower

    Severe

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    2009 ISA Priority Projects

    1. Create a Cyber Security Social Contract betweenbusiness and government to provide marketincentives for improved security

    2. Develop Best Practices for financial riskmanagement of cyber incidents

    3. Create a framework for managing conflictinglegal structures and unified communications tech.

    4. Develop standards to secure the VOIP platform5. Framework to secure the IT supply Chain

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    ISA Supply Chain Project

    18 months long (start fall 07) Focus on firmware Carnegie Mellon University and Center for CyberConsequences Unit 3 conferences 100 Gov., Industry and Academic participants Results are strategy and framework provided to

    USG for NSC 60-day review of cyber policy

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    ISA/CMU Study Results

    1. Globalization of IT Supply Chain will increase2. USG reliance on IT will also increase3. Threat from IT supply chain significant for USG4. USG-only solution impractical5. Attackers will be fluid and creative so fixed

    policies will be ineffective long term

    6. Need a flexible framework of solutions7. Framework must account for both security and

    cost

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    Framework: Danger of

    Malicious Firmware

    Serious danger of infiltrating the supply chain Altered circuitry to transfer control over info

    systems

    A logic bomb cold lay dormant then activated atthe worst possible moment

    A weapons system could be shut down whenneeded, or even turned against the owner

    Virtually impossible to detect Domestic sole sourcing is economically impractical

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    Framework: Economic

    Issues

    Supply chain attacks are very difficult andexpensive

    Almost always cheaper and more effective to usemore traditional cyber attacks

    NATION STATES CAN AFFORD AND MIGHT BEWILLING TO INVEST IN SUPPLY CHAIN ATTACKS

    Some criminal conspiracies might also be willing toconduct supply chain attacks

    Malicious firmware is a serious but limited issue

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    Types of Supply Chain

    Attacks & Remedies

    1. Interrupt Operation: Maintain alternative sources andcontinual sharing of production across chain

    2. Corrupt Operation (e.g. insert malaria): strict control ofenvironment where key IP is being applied, logical andphysical tamper proof seals/tracking containers

    3. Discredit the operation (undermine trust or brand value):logging operation and responsibility

    4. Loss of information: Versioning as a tool for protecting IP

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    Framework: Stages When

    Attacks May Occur

    1. Design Phase2. Fabrication Phase3. Assembly Phase

    4.

    Distribution Phase

    5. Maintenance Phase

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    Framework: Legal Support

    Needed

    1. Rigorous contracts delineating security measures2. Locally responsible corporations w/long term

    interest in complying3. Local ways of overcoming agency problems and

    motivating workers and executives

    4. Adequate provision for verifying implementationof security

    5. Local law enforcement of agreements at all levels

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    Larry ClintonPresident

    Internet Security Alliance

    [email protected]

    202-236-0001