Cybersecurity Archives • NMS Consulting A Vision for Solutions Fri, 04 Oct 2024 22:47:32 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://nmsconsulting.com/wp-content/uploads/2018/12/cropped-NMS-Favicon-32x32.png Cybersecurity Archives • NMS Consulting 32 32 The True Cost of Big Data https://nmsconsulting.com/the-true-cost-of-big-data/ Fri, 31 Jan 2020 13:43:00 +0000 https://nmsconsulting.com/?p=4076 Big Data

From 2012- 2020, the digital data domain will grow by two times every two years.

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Big Data

statistics

Between 2012 and 2020, the digital universe will grow by two times every two years.

The recent availability and generation of data has created multiple business opportunities. Decision support has been taken to a new level. The explosion in data has created new platforms to make better business decisions. Our world is a world of Business Intelligence that enable organizations to be proactive and not just react to market changes. It allows organizations to increase the pace of innovation and improve business processes. Big Data creates data driven organizations.

Companies can use current and historical sales data to adjust manufacturing and fulfillment levels. It facilitates “just in time” stock, the right product mix, reduces inventory levels and prevents out of stock situations for consumers, all while margins are improved and the company is able to approach customers in a personalized way and with the trade promotions that the market wants. Insurance companies can use large amounts of transactions to measure risks, conduct what if scenarios, stress tests, and external factors to generate exposure and risk analysis.

The Big Data Opportunity

The opportunity is to leverage all the data assets to be proactive and enhance the business opportunities, capture new markets, customers, and increase margins. The key is to leverage the value of the large amounts of data, identify the ideal business areas of an organization and maximize the use of technology to get the best business insight and edge. Most organizations do not use Business Intelligence and Analytics effectively. The vast majority are not leveraging the data and turning it into “Business Intelligence”. Companies have “Data Warehouses” or a collection of data in one place. Less than 20% of companies have mature Business Intelligence that are used in the execution of the company business strategy. Executives get out of date or incorrect information. However, companies that leverage Business Intelligence and Big Data are more competitive and profitable.

What are the true costs of Big Data? There are multiple studies concluding that an Open Source data warehouse with 30TB of data cost approximately $1,000,000 per year.

The True Cost of Big Data



While Open Source Big Data offers low cost software, the hardware costs are high. Big Data offers business benefits in tackling Risk Management, Fraud Management, and Customer Insights. All costs of Big Data need to be evaluated including hardware, power/energy, and talent.

The True Cost of Big Data



The latest big data statistics show some remarkable figures such as that from 2012- 2020, the digital data domain will grow by two times every two years (Source: IDC).  Also, in a recent survey by MicroStrategy, Between 2012 and 2020, the digital universe will grow by two times every two years. (Source: IDC). This shows just how important it is to fully capture the power of the information that is beneath all the data we see around us.  Another interesting fact is that data applications and analytics are estimated to grow from $5.3 billion in 2018 to an astounding $19.4 billion in 2026 (Source: Statista).


About the Authors

Oscar Perez has functional expertise in Artificial Intelligence, Big Data, supply chain, SOA, SAP, CRM, procurement, corporate finance, and product marketing. He specializes in software selection and implementation of SAP ERP packages. Oscar has appeared in publications including Computerworld, InformationWeek, and The Wall Street Journal.

Mr. Perez has conducted project reviews for Goldman Sachs, Bain Consultants, Brown Brothers Harriman, McKinsey & Company, Norges Bank Investment Management, P. Schoenfeld Asset Management, Iconiq Capital, Greencape Capital Pty Ltd, JMI Equity, Coatue Management, The Boston Consulting Group, Platinum Asset Management, Invesco, Guggenheim Partners and private equity firms.


Arthur Mansourian has a 12-year track record as both a management consultant and investment banker, advising clients on valuation, capital markets, structured financing, mergers, acquisitions and divestitures and general corporate strategy. 

Mr. Mansourian served as Vice President while at NMS Capital Advisors, when the company achieved cumulative sales growth of over 5,100% with annual compounded sales growth in excess of 120% from 2012 to 2017.

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Why Human Error is a Major Threat to Cybersecurity in 2022 https://nmsconsulting.com/4047/the-human-error-in-cybersecurity/ Wed, 21 Sep 2022 11:30:00 +0000 https://nmsconsulting.com/?p=4047

Cyber training is fundamental to the cyber defense strategy - an estimated 45% percent of companies indicate that their personnel have a problematic shortage of cybersecurity skills.

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Human Error in Cybersecurity

 

Studies show that up to 95% of cybersecurity breaches are due to human error.

 

On a warm November morning in 2017, Uber had finally announced a breach it concealed for an entire year where personal information and license plates of 600,000 drivers and personal data of 57 million users had been compromised. Uber tried to negotiate and retrieve the data without notifying those affected and even paid a ransom of USD 100,000 (registered as a bug bounty). One of the top unicorns was being exposed by two external individuals who gained access to the information stored in the third-party cloud service. How did it happen? Should we blame the cloud provider? Definitely not.

Uber had been lacking the cloud access control that prevented unauthorized access. Just the concealment of the breach alone cost the company $148 mil and, as in many cases, the loss in revenue, market value, damage to reputation and legal costs are very difficult to calculate as they expand on a rolling basis.  Just a few days ago, Uber again experienced a cybersecurity issue, as a hacker was able to breach the company’s internal network

An astonishing statistic indicates that cybercrimes collectively have yielded at least $1.5 trillion in profits for criminals annually. Since 2010, we have seen a sharp rise in the coverage of cyberattacks in the media such as Mossack Fonseca, Equifax, Marriott, and National Health Service to name a few. Cybercrime has been a substantial threat to companies and individuals for a few decades now, and it is only in the past few years that the topic gained adequate coverage. For instance, MI5 had presented astounding statistics regarding far Eastern espionage groups spying on established western firms. One group had nearly 500 targets and had gained access to IT systems for an average of 365 days, with the longest period being 4 years.

Companies often miss the learning point of such incidents, frequently assuming there is a tool that will come to their rescue. In a study of 50 major data breaches, inadequate technology solutions contributed to 28% of the attacks, and the remaining 72% of successful hacks stemmed from the failures in people and processes; namely phishing emails, malicious insiders and IT configuration errors. Also, according to Stanford University, roughly 88% of data breaches are caused by a mistake made by an employee. Even more surprisingly, an IBM study revealed that human error was the primary reason for 95% of cybersecurity breaches. 

Examples of human error in cybersecurity typically include;

  • Decision-based
  • Physical security
  • Password issues
  • Skill-based


Based on these errors, it is imperative that proper cybersecurity training is conducted thoroughly and regularly with employees across the entire company.

Cyber Training

Cyber training is fundamental to the cyber defense strategy. An estimated 45% percent of companies indicate that their personnel have a problematic shortage of cybersecurity skills.  “Training employees on security will immediately bolster the cyber defenses at most companies,” says Lawrence Pingree, Research Director at Gartner, because most data breaches are based on “exploiting common user knowledge gaps to social engineer them to install malware or give away their credentials.”

As an example, susceptibility to phishing declined by more than 40% after cyber training at Wells Fargo. The training, as any learning exercise, needs to be repeated on a continuous basis as shown in the example of the City of San Diego case, where susceptibility declined after training, but picked up again by the end of the year as the training effect “wore off”.

Cybercrime is on the rise – according to a global survey by Accenture, security breaches have increased by 67% over the last 5 years. Small companies are not safe either – a report by SCORE indicated that 43% of cybercrime targets small businesses. The personalized attacks are expected to prevail, and we see that industries like retail, oil & gas, utilities, media and legal are expected to be ranked in the top 10 attacks. Some of these industries are perhaps least protected of all, even though companies hold an immense amount of sensitive information. 

Building the Culture of Cybersecurity

Organizations of every size and in nearly every industry are starting to realize that when it comes to cybersecurity, having an unlimited budget and spending most of it on new tools is probably not the best strategy. Such an approach distracts from more effective organizational and cultural improvements. In order to make a consistent long-lasting change and build a culture of cybersecurity, security personnel and other executives need to collaborate closely with the rest of the lines of businesses to work on the challenges that need to be addressed with a holistic approach.

People are crucial to establishing the successful cybersecurity program of an organization and building the resilience needed to defend against a potential breach. They are at the forefront of designing, testing, implementing, and operating defenses. Conversely, their failures, whether due to malicious intent, negligence, or ignorance, will likely be the source of an organization’s next breach.

Attackers focus on finding the weak link in the defense of the firm – that one flaw that will allow them an undetected passage to the information – so why would one focus on penetrating the firewalls when there is a perfect opportunity to exploit the human nature?

Understanding the prominent mechanisms of a healthy cybersecurity culture will give managers and directors specific pathways to increased organizational resilience.  As shown in the diagram below, external influences, values, attitudes and beliefs create the core of a culture of cybersecurity.

The key to establishing a strong culture of cybersecurity is ensuring that employees understand the importance of executing their daily tasks and activities while being cognizant of security.  This may seem simple enough, but creating such a culture involves transformation from top to bottom – the way employees work, the way leaders lead, the way processes are executed, and the way issues are addressed.

About the Authors

Alexandra Di Nella is an experienced management consultant with a focus on emerging technologies, digital transformation and organization design & development. She works across sectors of machine learning, big data and security. Her background is in new venture and product development, covering strategic, financial and operational aspects of venture companies. 

Prominent firms Alexandra worked for include The Boston Consulting Group, where she served as a Technology Project Lead. Her role included TOM definition and PMO establishment, creating framework to guide security, design and architecture in core tech offerings, and development of talent recognition & retention program for a technologically challenged global firm.

Arthur Mansourian has a 12-year track record as both a management consultant and investment banker, advising clients on valuation, capital markets, structured financing, mergers, acquisitions and divestitures and general corporate strategy. 

Mr. Mansourian served as Vice President while at NMS Capital Advisors, when the company achieved cumulative sales growth of over 5,100% with annual compounded sales growth in excess of 120% from 2012 to 2017.

Sources

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