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Outsourcing Managed Security: Risk and Rewards
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Financial-services companies — whose business is risk management — are in the forefront of the move toward managed-security services. As the threat of computer-initiated attacks increases, and as regulators put more pressure on financial institutions to shore up their information assets, financial institutions are turning toward outsourcing their information-security functions to third-party processors.

These outsourcing deals, which are often part of a larger IT-infrastructure outsourcing deal, but can also be stand-alone, are being done for the same reason banks have outsourced other parts of their operations — to mitigate risk by placing control of a key operation in the hands of highly skilled practitioners.

“The outsourcing of information security makes sense to organizations that have a highly developed concept of risk,” says Prosenjeet Banerjee, VP and Head of Information Security, HCL Technologies, an IT-outsourcing firm based in India. More than half of its clients are financial institutions.

Banks are being driven to ink managed-security deals as they seek to restore their reputation for integrity, which have been sullied by disclosures of theft or loss of sensitive customer information, including credit card and social-security numbers. In the most widely publicized case, some 40 million credit card accounts were exposed to theft last year due to a security breach at CardSystems Solutions, a processor of card payments.

RESPITE FROM

ATTACK
with MANAGED SECURITY

Managed-security services include ongoing security management, hardware, software and applications needed to shield a hosting environment and sizeable network from attack 24x7. Such services provide the highest levels of protection and proactive response, in the event a suspicious threat or actual intrusion is detected. They involve teams of experts who continuously monitor activity in real time, and provide alerts and warnings when the situation warrants.

Some of the managed-security services include:

Managed, dedicated and virtual firewall services. Installation, configuration and management of either a dedicated firewall device in a hosted environment, with a choice of hardware and high-availability configuration or a virtual firewall service, which offers the same customization capabilities as a traditional dedicated firewall service, without the traditional infrastructure. Customers pay only for the committed bandwidth used to access the service, and the service can be deployed or expanded in a matter of days.

Internet-access firewall services. Internet-access firewall is designed to protect Internet-facing applications. Customers share a redundant firewall configuration with other customers and gain the protection of a high-availability managed firewall at an affordable cost.

Virus-alert services. Virus-alert services provide news about viruses and related threats through e-mails, quarterly newsletters and optional pager alerts. They provide a one-stop source for information and support needed for quick response — freeing staff from combing through journals and news sources to uncover the latest word on security threats.

Network-intrusion detection. Network-intrusion detection helps detect malicious probes, scans or attacks with 24x7 monitoring of the Internet traffic flowing through a network. It is designed to identify and correct network vulnerabilities before systems are compromised. It includes installation and management of the intrusion sensor, logging and event analysis and recommended security enhancements.

Host-intrusion detection. Host-intrusion detection provides detailed and relevant information regarding security attacks against web servers. The service detects suspicious activity in a server’s operating system, application and related processes, identifying what the attacker did, the commands that were run, the files that were opened and the system calls that were executed.

Incident management. Incident management provides help when a security breach or serious threat is discovered. From incident detection to timely closure, security consultants can provide technical and procedural assistance, incident investigation and recurrence prevention.


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