Internal control assures profitability and efficiency of operations, a reliability of information along with adhering to rules and different regulations. It is an integral part of daily management and administration of companies.
The COSCO model is used to define control as a method which is affected by a board of directors of entities, management and other personnel, developed to give reasonable assurance of gaining objectives in various categories (Peltier, 2016). These categories include efficiency and effectiveness of operations, dependability of financial reporting and compliance with applicable regulations and laws. Under a smart internal control system, five layers work to support achievement of the mission of entities.
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Layers of COSCO model |
Discussion |
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Control environment |
It includes assignment of responsibility and authority, commitment to competence, ethical and integrity values and so on. |
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Risk assessment |
It involves managing change, risk analysis and identification. |
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Control activities |
It comprises of business continuity and backups, application change management and outsourcing. |
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Information and communication |
It includes the effectiveness of communication and quality of information. |
|
Monitoring |
It includes reporting deficiencies, separate evaluations and ongoing monitoring. |
Ineffective security management has been damaging internal control in various ways. Ineffective security management can damage internal control in various ways. First of all, there can be lack of power with multiple authorisations of transactions. For example, with orders having orders above a particular dollar value like $1000, more than a single quotation can be retrieved that can be gained reducing overall expenditure (Chang et al., 2014). Another instance can be given regarding lack of logical and physical security. Protecting personal data and banking data are turning out to be vital with a rise in risk of credit or identity theft. An employee or personal data have been preferably encrypted and could be stored in secure folders.
The problem statement can be analysed in the following way. Internal security audits are essential sources of information. It highlights areas needing attention and is not overly driven by recommendations and findings. In many cases, security controls are proper for infrastructure and not related directly to business. It leads internal control tea, for organisations to seek weaker security controls under that infrastructure.
Risk assessment provides guidance and insights to develop an effective security strategy. Apart from analyzing,organizational risk, risk analysis focuses on examining governance, effectiveness and implementation of controls of information security. The result of the assessment is a prioritized assessment of exposures and risks that could be addressed for better protection of organization. Steps of risk assessment process include identification of hazards. This includes anything that causes harm. It also helps in a decision that might be harmed and analyze risks and undertake actions. Lastly, it makes a record of previous findings (Shameli-Sendi, Aghababaei-Barzegar & Cheriet, 2016).
Data security is an integral part of decision making process. For instance, creating informed decision is very challenging. This is mainly when operations of data centre and various other primary elements of a service provider are invisible. Another example can be given about, establishing a partnership with security management is vital to make sense of data security under third-party solutions. With the help of transparency into service, one can develop a clearer vision of risk management responsibilities and create a relationship of trust.
Application of transparency at every level of organisations permits leaders to communicate with companies objectives to every staff. Moreover, through allowing every people in the company helps in understanding clearly about how business could be run. This makes executive and boards decide policies by transparency and accountability. Though it has neither been difficult for organisations that are nor been customers to slide, beginning at any point is never too late (Ermakov et al., 2014). Besides, transparency requires being appropriately established. Hence every part of that organization would taste the see outcomes of transparent business.
The opening statement is true in many senses. As one is unaware of risks at a workplace, one is simply putting themselves, employees, customers and full firm into danger. As it comes to employee safety, moving above legal minimum helps to eliminate as much risk as possible to decrease the number of safety-related incidents that are reported.
“Trust” is defined as the bilateral relationship. A trust relationship is important regarding business conduction. Regarding trust, specialists must ensure that it is in a secure and safe place where to perform and receive treatment (Soomro, Shah & Ahmed, 2016). For achieving this, every member of employees requires supporting this work. It is done by reporting security concerns that have been possessing and incidents that might occur.
For example importance of security management lies in the fact that it has ensured local security managements meeting national standards. Further, it has been developing and improving domestic security policies and provisions.
Various partnerships for security management never get success as partners are not aligned with values and goals for an organization. This example shows the case of differing amounts. As the business develops differences turn out to be a growing source of friction. This can be mitigated by realizing that before entering a business relationship, prospective partners must be meeting and articulating specific factors. This includes why they have wanted to become entrepreneurs. This also includes determination of vision for the company along with long-term objectives.
Another example is a personality clash. Here, sharing of risks and possessing complementary skills sets are huge advantages of business partnerships (Lowry et al., 2015). However, personalities of partners have never been meshing sufficiently. This results in the fact that business has been headed for trouble. All these problems can be solved by handling situations like dealing with customers, vendors and difficulties. Moreover, they should keep in mind the differences in personality that can benefit instead of a hindrance. This provides respect to partners, valuing opinions and possesses a shared vision for the business.
The initial statement can be analyzed through the fact that few base levels of trusts are needed to possess employment contracts. This is also helpful to get engaged in commercial transactions. Moreover, beyond those minimum thresholds trust has also been playing an important role.
“Risk assessment should always be used to determine the content of a security policy. Discuss.”
Security policies are critical as it states how any company has been planning to secure various physical and information technology assets of a business. They have been providing clarity to readers while dealing with accountability activities and issues that are of crucial importance to the company. This includes regulatory problems or requirements, legal liabilities, health and safety that have severe outcomes.
RUSecure has been offering a set of security policies. This has been including supporting of documentation that is ready to be customized and tailored to any particular needs. Further, they have been offering an interactive editing activity and automated delivery toolset regarding security policies also (Safa, Von Solms & Furnell, 2016). Another example can be given from the case of Insight Consulting in the UK. They have been providing a training course that dealt with the establishment of smart security policy. It has been covering the entire process from designing and planning through deploying of maintenance and upkeep.
The risk assessment steps have been involving identification of hazards and deciding who could be harmed. The next step is to evaluate risks and recognise precautions. Following this, the records are to be found and then they are implemented. Lastly, the risk assessment and updating are to be reviewed.
Content security policy is helpful in detecting and mitigating particular kind of attacks. Example of this includes data injection attacks and cross-site scripting. The attacks are useful all the things from stealing of data to a distribution of malware and site defacement (Flowerday &Tuyikeze, 2016). Besides, security policy content can be found out via HTTP response header like HSTS. This has been defining an approved source of materials that could be led by contents.
The given statement can be justified by the fact that risks determined by risk assessment contain security measures that help in reducing vulnerabilities and risks to a proper and reasonable level to deliver data confidentiality, availability and integrity. This is to protect against reasonable anticipated hazards and threats.
“Audit supports policy and standards compliance but not security. Discuss.”
“Compliance” is regarded as the state of being by various established specifications or guidelines or process of becoming so. It can be defined as the encompassing effort ensuring organisations have been abiding by a government and industry regulations.
“Security”, in Information Technology is the defence of IT assets and digital information against external and internal, accidental and malicious threats. It includes response, prevention and detection to threats by using IT services, software tools and security policies (Madi et al., 2016).
Compliance activities and security efforts converge roughly as policies in place, discovering assets, defining strategies, analysing the level of compliance and remedying vulnerabilities or which is out of respect. Here, for example, password policies comprise of relevance around internal security rules GLBA, HIPAA, Sarbanes-Oxley and additional external mandates. Again, regarding compliance patch policy is relevant to internal IT, NIST, HIPAA, GLBA and Sarbanes-Oxley infrastructure management. Preferably, all these controls and procedures comprise of relevance around activities of IT operation teams, security, compliance and audits (Jespersen et al., 2016).
Business requires compliance and security solutions transcending individual operation, security and audit teams providing a holistic view of compliance posture and organisation risk. It has been much more impactful for organisations to able to manage centrally every regulatory mandates and security policies. Thus every policy is enforced efficiently, evaluated, maintained and accessed through compliance, security and operation teams. Compliance audit comprehensively reviews adherence of organisations towards regulatory guidelines. Thoroughness and strength of compliance preparations are evaluated by IT, security or independent accounting consultants.
“Successful information security is impossible without trust. Discuss.”
Trust can be defined as a fiduciary relationship in which one party known as trustor provides another party to hold property or assets(Bugiel, Heuser & Sadeghi, 2013). It is considered to be benefit for third party which is known as beneficiary. Trust is generally used for providing legal protection for the asset of trustor. It generally focusses on providing legal protection for the assets of trustor so that it can save time, reduce paperwork and in some cases also reduce various kinds of associated taxes.
Trust can be defined as a critical element for success in the fast changing world. Customers generally buy products and services because of the built trust by the organization. It generally focuses on building of trust both internally and externally (Chang, Kuo & Ramachandran, 2016). It generally aims in setting of mutual goals so that stronger relationship can be built.
Security manager generally focus on organizing and overseeing of various kinds of security operation in an organization (Ryoo et al., 2014). The ultimate goal is creating and saving the environment where employees, visitors and property can be safe and be well protected. There are large number of responsibilities of a security manager like:
“Information security policies encourage ownership of security. Discuss.”
Three distinct purpose of information security policy are
A security policies focus more on technical infrastructure. It has certain number of technical infrastructure which can be used for protecting of information from unauthorized kind of access of their employees (Chang, Kuo & Ramachandran, 2016). It is generally believed organization policies should focus on dedication of needs of educating employees and proper protection of information about the asset of information. It is generally believed that organizational policies should work in such a way that it can educate employees about the way of protection of information related to organizational assets (Ryoo et al., 2014).
Information security risk assessment is considered to be an on-going process which is in relation to process of discovering, correcting and prevention of security problems (Ma et al., 2015). Risk assessment is nothing but an integral part of risk management process which is designed in such a way that it can easily provide information systems.
Risk treatment can be defined as the process of selecting and implementation of certain methods which can be used for modifying risk. It generally inclusive of avoiding, optimizing and retaining of risk (Li et al., 2014). The measures generally focus on selection of security measurement which can be easily used within Information security management system of any kind of organization. At this particular level security measurement focus on various kinds of security function which are generally implemented technically.
Business continuity planning is nothing but development, implementation and maintaining of policies, framework which is used for management of business disruption (Liu et al., 2013). Business continuity plan focus on prevention, managing and recovering of various kinds of impacts. It is noticed that business continuity plan is considered to establish cost-effective measures for various kinds of event to occur.
From the above discussion it can be concluded that this question focus on various kinds of information security policies. Three important policies of information security have been discussed above in details.
“Humans are the weakest link in information security defence. Discuss.”
Various organization round the globe spend millions of dollars on cyber security and it mainly ensures that vital data is protected from hacker’s eyes (Zhu et al., 2013). With the increase in number of cyber threats organization should ensure that they updated with latest kind of malware and virus protection or they have downloaded latest kind of firmware which can be used for protecting themselves from latest kinds of attacks. There is list of factors which can be used for used for securing IT services for any organization:
A security audit is nothing but an evaluation of security of information system of an organization. It is generally measured by analyzing the fact that how it works well with the set of criteria. A proper audit generally focusses on security of physical systems and environments (Sherchan, Nepal & Paris, 2013). Security audit generally focus on analyzing compliance like Sarbanes-Oxley act which mainly focus on fact how efficiently it can work well with information.
Various organization round the globe should work in such a way that it can ensure the protection of data and assets. Firstly, audit scope should be decided which generally includes the company assets which is related to information security. It is generally inclusive of computer equipment, email, data and access related items like cards, tokens and passwords. After that past and potential future threats related to asset must be reviewed. Proper plan should be established which is used for maintaining various kinds of business operation which generally focus on business operation as soon as the threats have been established (Hardwick, Anderson & Cruickshank, 2013). This total mechanism of establishment and control of business process is known as intrusion prevention system.
It is considered to be a well-tested method for controlling methods which can be used for accessing various levels of security awareness of employees. Audit is mainly used for exploitation of human factor which is generally used for testing various kinds of security controls. It is considered to be a most important factors which makes use of methods of attacks and deficiencies related to security awareness.
At present business need to focus on the fact that good business imperative is considered to be an important factor for shaping the management of cyber risk (Hardwick, Anderson & Cruickshank, 2013). It is generally considered to be an important factor maximizing benefits and reducing various kinds of risk associated. They can easily create cyber security based on brand trust, culture and competitive advantage.
“Risk management institutionalizes risk ownership rather than treats risk. Discuss.”
Risk assessment can be defined as the identification of hazards which can negatively affect its impact on organization conducting business. This assessment generally helps in identifying various kinds of business risk and providing measures, process and lastly focuses on controlling and reducing the impact of risk on various business operations.
The five steps of risk assessment are
Risk treatment can be defined as method of selection and implementation of certain number of risk which can be used for modification of risk(Sherchan, Nepal & Paris, 2013). There are certain number of risk treatment measures like avoiding, transferring and retention of risk.
The five steps of risk treatment are
“Audit is essential for effective security management. Discuss”
Security management is an effective term which is utilized for addressing the security of a company or organization involved. The whole process by which the security of the place is determined such that the effectiveness is increased is included in the security management practices (Webb et al., 2014). Effective security management involves the utilization of security management practices such that it can be efficiently adopted into the normal functioning of the system.
Audit method involves a verification process which is utilized for verifying the status of an activity. This involves manually inspecting the various components such that it will be checked. It involves six different steps. The first step is requesting the documents of the components. The second step is the preparation of an audit plan. The third step involves scheduling a meeting with the necessary personnel. The fourth step involves the conduction of the fieldwork. The fifth step involves drafting of the report which involves giving the thoughts regarding the standards met by the product. Lastly, a meeting is conducted for closing phase which denotes the outcome.
There are various processes of security management which is followed for making a successful security adoption. The first method involves designing of security controls that can be used for increasing security (Ermakov et al., 2015). The next step involves testing which tests the various functionalities of the system. The third process is the mitigation of the security incidents while the fourth is the security process review. In the effective security management processes, the designing of security controls and the testing processes is utilized in the effective security management. In addition, these processes are effective in the audit process because the process of auditing involves analyzing the product that can be able to meet the demands of security in the market. This is the reason why companies are conforming to audits for their products to increase their product value.
“Law and regulation encourage trust in an organization’s management of information security. Discuss”
There are various differences between the laws and regulations. Firstly, the laws are seemed to be originated from the legislative assembly whereas the regulations are seemed to be originated from the administrative assemblies. The laws are termed to be rules and policies that are to be followed while the regulations are the extra details that are added to it. Thus, the use of regulations is mainly done for easing the implementation of the laws. For example, the Air pollutions act can be termed as a law whereas the need to fulfill it by various industries can be taken as a regulation.
According to the Data protection Act, there are eight different principles which are followed by all business parties or during transactions. They state that personal information must be processed in a lawful manner and must not be used for any other means which are not specified. It also includes that the personal data must be accurate and must be kept updated. In addition, the information must be kept secure and must not be shared with any other business parties (Johnson & Nodd, 2017). According to the Data Protection Act, the information must not be shared with other associated parties and this involves the third parties. This is being followed by all the companies and organizations and failure to comply with them can result in penalties to be incurred.
The use of legislation policies helps in denoting trust between an organization and third party (Miller, Levy & Swedler, 2018). This is mainly because the use of policies helps in denoting the brand value among the market and third party organizations are always on the look put for these companies or organizations. This increases the business transactions and thus leads to the formation of trsut among the parties.
Thus, it can be said that the use of laws can be effective for maintaining a requirements in the market which helps in increasing the brand value of the associated company or organization. This also helps in protecting the best interests of the associated consumers of them and thus leads to more business acquisition.
“Compliance with security policies ensures the protection of an organization’s information. Discuss”
Information security policy is considered to be a list of rules within a company or organization. These rules are to be followed by the personnel and staffs who are working there so that an effective structure is maintained. This is also involved with the security of data and the storage of data. A security policy must address all the necessary components which are consisted in the security policy. The security plan must include the basic components which are overview, scope, policy, enforcement and revision tracking. These must be included in the security policy which in turn can be used for adopting in organizations or companies.
An Information Security Management System (ISMS) includes a sequential manner of managing information among the system so that it stays safe. It includes the people, processes and the systems (Agrawal, 2017). The major components of an ISMS system involve a security process, necessary resource, personnel and management principles. These components contribute to the normal functioning of ISMS. The reason why the use of ISMS is adopted at the center of organizations is that it provides a level of certification to them such that they can implement, establish, operate or review the changes in the business processes. In addition, the stakeholders related to the organizations are also benefitted from them if a certification of ISMS is present there (Naseer et al., 2016). In addition, the implementation of the ISMS certification also helps in handling of the risks related to the business which in turn leads to the increase in the standards of the company.
The involvement of policies can be used to play a different role in case of any laws or regulations. According to the Clause 5 of ISO/IEC 27001 standard, organizations are required to demonstrate the activities of leadership which is mainly focused on the structure of the ISMS. In addition, these policies also require that the top level management personnel are to successfully review the standard process.
Thus, it can be concluded that the need for ISMS is required for considering the various attributes of an organizational aspects. This will also help in contributing to the general functioning of the processes so that efficiency is maintained.
a) Information security is defined by the adoption of processes and standards that can be used for preventing unethical access to the system. This helps in securing the network and helps in protecting the data and information stored in a system.
The management processes which are involved with the security of the network and other information security aspects are termed as information security management. This helps in securing the flow of the processes and also tends to increase business efficiency.
An Information Security Management System (ISMS) consists of a logical manner of managing various amounts of information or data among a system so that consistency among that system is maintained.
Information security control involves various methods and processes which are used to check the effectiveness of the processes in terms of detection and monitoring of the network or information stored.
In a similar manner, the ISO/IEC 27001 is another standard which is used for information security systems. In this standard a management system is specified to the company heads which helps to show the specific controls and requirements for setting up the security protocol system. The organizations that are supposed to meet the set criteria are said to have been accredited by this standard.
Lastly, in case of the ISO/IEC 27002 standard, the best recommendations are provided for information security controls which are being used for initiation, implementation or maintenance of the ISMS system.
These information security solutions are required to be followed by the company head. However, the devices that they needs to setup are not provided in the standards.
Firstly, in case of the company applying for cloud solutions, the need to mitigate the risks is required. This is a pre-requisite for the company to follow the standards so that an effective network is established (Feng, Wang & Li, 2014). Another example is a company adopting virtualized data centers. This presents a problem as the solutions is to be provided from the third parry providers and the compliances are to be followed so that an effective business process is maintained.
A quantitative risk analysis involves the analysis of the information by considering the quantity of information. This is advantageous as it helps to consider the outcome as opposed to various others. The disadvantage is that the quality is not considered.
In case of an internal information security audit, the necessary compliances are checked for reviewing the network based risks and practices while the external information security audits are concerned with the financial implications of the components (Safa, Von Solms & Furnell, 2016). Internal audits are conducted by employees of the organizations while the external audits are conducted by different personnel.
Even under the presence of qualified personnel, the need for external audits can be beneficial. This removes the need for an organization to invest in their training process and thus helps to check the quality of the process. Another reason is that this helps the company get a successful brand value when external audit is done.
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