Risk Assessment and Incident Response for Finance Systems

 

Learning Objectives

1. Review the steps for monitoring, incident detection, and data loss prevention using all-source intelligence.
2. Identify the elements of an incident response policy and members of the incident response team (IRT).
3. Classify the SSCP’s role in supporting forensic investigations.
4. Evaluate the scenario.
5. Apply knowledge in the given scenario.

Instruction

XYZ Network Solutions provides network services and value-added communications to customers in several countries in Europe and North America.

The corporate headquarters is in Miami, Florida, with offices in Chicago, U.S.A., London, UK, and Frankfurt, Germany. The company has a sales division with eight employees led by Andre Wisser, human resources with three employees led by Jane Aubin, and Technical and Communications with 45 employees led by Peter O’Day. Finance is led by Andrea Worth, but most of the payroll and finance functions have been outsourced to a SaaS cloud provider.

1. Andrea Worth, Manager, Finance has just asked you whether you have conducted a risk assessment on the Finance systems (payroll, accounts receivable, accounts payable, email, etc.). What is the difference between IT risk and business risk?
   
   
2. List some of the threats to an IT system that supports Finance.
   
   
3. What are the reasons to implement separation of duties and how can this be done?
     
4. XYZ Network Solutions has asked you to set up an incident response program that will work together with the help desk and information security department. 
   
   
5. What should be the first few steps in creating an incident response program?
   
   
6. What is the first priority and first steps to be taken when an incident is detected?
   
   
7. How can an organization ensure that lessons are identified following an incident and that they are carried out as ‘lessons learned’?

1. Andrea Worth, Manager of Finance, has just asked you whether you have conducted a risk assessment on the Finance systems (payroll, accounts receivable, accounts payable, email, etc.).

Difference Between IT Risk and Business Risk

• IT Risk: Involves potential threats and vulnerabilities specific to the information technology infrastructure, such as data breaches, system failures, and cyberattacks.
• Business Risk: Involves broader organizational risks that can affect the business operations, reputation, and financial health, such as market competition, regulatory changes, and economic downturns.

2. Threats to an IT System Supporting Finance

Cyber Attacks: Phishing, malware, ransomware.
Insider Threats: Employees misusing access, fraud.
System Failures: Hardware or software malfunctions.
Data Breaches: Unauthorized access to sensitive information.
Third-Party Risks: Vulnerabilities in SaaS cloud providers.
Human Error: Mistakes leading to data loss or corruption.

3. Reasons to Implement Separation of Duties and How It Can Be Done

• Reasons:

  • Reduce Fraud:
    Prevents a single individual from having control over all aspects of financial transactions.
  • Error Prevention:
    Limits the potential for mistakes by dividing responsibilities.
  • Accountability:
    Ensures that different individuals are responsible for different parts of the process, making it easier to trace errors or malicious actions.

• Implementation:

• Divide Responsibilities:
  Assign different tasks in a process to different employees (e.g., one person handles payments, another handles reconciliations).
• Access Controls:
  Implement role-based access controls to restrict access to sensitive information.
• Regular Audits:
  Conduct regular internal and external audits to ensure compliance with separation of duties.

4. Setting Up an Incident Response Program

• First Steps:
  • Establish a Response Team:
    Form an incident response team (IRT) with representatives from IT, HR, Legal, and Management.
  • Develop Policies:
    Create an incident response policy outlining roles, responsibilities, and procedures.
  • Training:
    Train staff on recognizing and reporting incidents.
  • Communication Plan:
    Establish a communication plan for internal and external stakeholders during an incident.
  • Tools and Resources:
    Ensure the IRT has access to necessary tools and resources for incident detection and response.

5. First Priority and Steps When an Incident is Detected

• First Priority: Contain and mitigate the impact of the incident to prevent further damage.
• First Steps:
  • Identify and Classify:
    Identify the nature and scope of the incident.
  • Containment:
    Implement measures to contain the incident (e.g., isolating affected systems).
  • Eradication:
    Remove the cause of the incident.
  • Recovery:
    Restore affected systems and data.
  • Notification:
    Inform relevant stakeholders and authorities as required.

6. Ensuring Lessons Learned

• Post-Incident Review:
  Conduct a thorough review of the incident, identifying what went wrong and what worked well.
• Document Findings:
  Document the lessons learned and update policies, procedures, and training materials.
• Implement Changes:
  Make necessary changes to improve the incident response process.
• Continuous Improvement:
  Regularly review and test the incident response plan to ensure it remains effective.
  
  

XYZ Network Solutions can establish a robust incident response program and effectively manage risks to its finance systems by following these steps.