A Framework for Addressing Security and Managing Business Risk

1. The Information Security Programat Prudential FinancialKen TyminskiVice President and Chief Information Security Officer, The Prudential Insurance Company of America A Framework for Addressing Security and Managing Business Risk

2. Creating the Framework • Prudential Background Information • The Changing Environment • Components of the Program • The Security Community • Addressing the Business Risk

3. Prudential Background • Founded in 1875 • Prudential Financial, Inc.'s Common Stock began trading on December 13, 2001 on NYSE under the symbol "PRU." • 15 million customers in the US and internationally • Total consolidated 2002 annual revenues of $26.7 billion • Total assets under management of approximately $422 billion as of June 30, 2003 • Operating in over 30 foreign countries

4. Prudential Financial – IT Facts • 2 large Data Centers in US, 2 in Japan • 5,000 Servers in US • Most international locations have small data centers • Large Global Network • 1,347 Network nodes (routers) • 2,400 VLANs

5. The Changing Environment • Our business is going through significant change • The markets we operate • Company Structure and Growth • Technology we use • Business Risk is changing • Mergers/Acquisitions • Divestitures • Operation model • Outsourcers • Third Parties and Partners • Technology Risks are increasing • Regulatory change

6. Threat Sources External • Hackers / Crackers • Fame • Financial Gain • Hired for Industrial Espionage • Hacker “wannabes” Internal • Disgruntled Employees • Trusted Insiders • Financial gain • Unintentional errors • Poor password selection • Virus introduction

7. Some Recent Headlines…… Credit Card Server Hacked at 'Greenville News' • Editor & Publisher Online 07/28/2003 Graduate Student Steals 60 Identities at University of Michigan • Michigan Attorney General 8/01/2003 Kentucky State Auditor Says Hackers Infiltrated Agency Network • Network World Fusion  07/30/03 Former Telecast Fiber Worker Pleads Guilty to Hacking • Boston Business Journal 08/04/2003 Missing Computer Adds to Airport Screeners' Woes • Newsday 7/20/2003

8. How Organizations are Responding • FTC expands its consumer privacy initiatives • Homeland Security – Enhances programs designed to protect the U.S. financial system against criminal exploitation • Businesses developing and enhancing Security Programs • Terrorist Threat Integration Center (TTIC) to share information among federal agencies

9. The Security Program • Security Architecture • Policies, Standards, Procedures and Processes • Security Tools • Security Research • Security Awareness Program • Incident Response Teams • Security Community It’s not about the best technology!

12. Security Architecture • The architecture describes: • The business context driving our approach to protecting our operations and systems • Our core beliefs shaping our operations and systems environment • Our security principles representing management's preferences for the way operations and systems are designed, developed and operated • The secure processes and capabilities supporting our business objectives, capabilities and strategies The People, Processes and Technology needed to operate securely

13. Security Life Cycle • Begins with Risk Assessments • Software Development Life Cycle (SDLC) • Component of all Project Management Plans • 3rd-Party/ Vendor Security Assessments • Reviews and Monitoring • Internal Risk Management • Internal & External Audits • Update Policies, Standards and Procedures

14. Policies, Standards, Procedures and Processes cont.. • Information Security Policy • Information Classification Policy(new) • Data Protection Policy(new) • Internet Policy • Virus Policy • Remote Access Policy • Software Use Policy • Customer Privacy Policy • E-Mail

15. Policies, Standards, Procedures and Processes, II • Control Standards • Foundation for all Security Standards • Engineering Specifications • Exception Process • Engineering Specifications • NT and Windows 2000 • UNIX • Internet Infrastructure • Extranet • Remote Access • AS400

16. Policies, Standards, Procedures and Processes, III • Terminations and Transfers • Emergency Access • Software Development Life Cycle (SDLC) • Business Group Self Assessment • Vendor Reviews

17. Authentication SecurePass SecurID Windows Authorization Access Manager RACF Administration Tivoli Identity Manager Vanguard RACF GetAccess Windows Security Services Enterprise Server Administrator (ESA) Security Tools

18. Security Technology Deployed • Confidentiality • Lotus Notes Encryption • Secure Shell (SSH) • PGP encryption tool • Monitoring / Enforcement • IntruVert • Sygate • Solar Winds • Enterprise Server Manager (ESM) • Enterprise Server Reporter (ESR) • Enterprise Policy Orchestra (EPO)

19. Security Awareness • 12-month program • Outside research and trend analysis • Web site • Presentations targeted to specific audiences • New Employees • Security Community • In-service Training • Inter-Office E-Mail Communications • National Computer Security Awareness Day • Computer-Based Training (CBT)

20. Vulnerability Assessment and Scanning • Twice a year we conduct a penetration and vulnerability test. • Ongoing mapping of the network • Access review scans periodically performed • Ongoing policy compliance monitoring • Modem sweeps several times a year

21. Security Monitoring and Response • Incident Response Process • Intrusion Detection Monitoring • Enterprise Security Monitor • Enterprise Security Reporter • RACF Reports • Anti-Virus Response Team • Internet Response Team • Cyber Crime Investigation Organization • PruAdvisories • Annual Self-Assessments of the Security Program

22. Security Community (Internal) • Business Information Security Officers • Security Administrators • Program Management • CTS Engineering and Operations • Senior Management Involvement • The community works together to: • Develop and implement standards, procedures, guidelines and processes to support the security program; and • Project work to address risks and emerging threats.

23. Security Community Overview • Every Associate has an accountability • Management is held accountable • Support organizations implement • Each business and functional area has a security office • It’s part of the BAU process Security is becoming part of the culture.

24. External Security Participation • Information Systems Security Sharing Forum (ITSSF) • InfraGard • Information Systems Security Association (ISSA) • State of NJ Cyber-terrorism Task Force • The Research Board

25. Security Program Effectiveness • Stopping SPAM • Prudential uses a spam/profanity filter for inbound Internet e-mail. • Currently we are blocking about 90,000 spam emails a day (about 35% of all inbound internet mail). • Stopping VIRUSES • Weekly – we stop between 800 to 1,000 viruses at our • e-mail gateway. • Weekly – we detect and clean 900 – 1,200 viruses on the desktops and servers. • Occasionally we detect and clean upwards of 25,000 viruses on desktops and servers.

26. Security Program Observations • Awareness is a key component • Benchmarking helps make the program stronger • Making security part of everyone’s job is key • Technology is important, but the people are more important • Security experts are valuable, but so are other technology experts It takes everyone to make it work!

27. Emerging Areas of Focus • Instant Messaging • Wireless Devices (PDA, Cellphones, etc.) • Outsourcing • Mergers & Acquisitions • New / Changes in Laws

28. Avoiding the Hype • Understand your business risks • Understand the potential business impact • Understand what your peers are doing • Understand the relevance of the threats • Understand your capabilities • Understand your organizations culture Security is a business issue and risk.

29. Questions

30. Alert Resources • CERT - Computer Emergency Response Team, Carnegie Mellon • BugTraq • Security Wire Digest • Web Alert - METASeS DefenseONE Command Center • Microsoft Product Security • InfraGard • FIRST • AVIEN - AntiVirus Information Exchange Network • McAfee & Sophos - AntiVirus vendor alerts

31. Thank you.Questions, comments?