Nearly 34 percent of survey respondents say auditing user access and reviewing privileges will be their top compliance challenges in 2007. Readers also rank defining and enforcing security policies and encrypting the transmission of sensitive data as big regulatory issues for next year.
D&E's Martin, who estimates that roughly 20 percent of his time is spent on Sarbanes-Oxley and HIPAA compliance issues, says that database encryption is a challenge for his firm, and that external auditors don't provide much guidance on that front: "They ask for things that would be detrimental to our systems."
Having a good plan for notifying customers in the event of a breach that exposes their confidential data is another compliance-related task his firm is tackling. California's security breach law SB 1386 paved the way for similar requirements in other states. "We keep hearing there might be a federal law. Now there are 30 different state laws to comply with," Martin says. "It's just a mess."
The company also is looking into laptop encryption. Lost or stolen laptops containing private customer data can run a company into all sorts of regulatory trouble, not to mention reputational harm.
For USG, the segregation of duties required by Sarbanes-Oxley Section 404--for example, making sure an accounts-payable employee doesn't also have access to the general ledger--is a top compliance challenge, but one that the company has a grip on, Watson says.
Chad Bartosh, IT director at North Dakota Credit Union League--a statewide association of credit unions--says the small firm has limited resources and is working to identify a vendor that will help it meet Federal Financial Institutions Examination Council (FFIEC) rules and other regulations.
"We're trying to get everything done through one shop so we don't have to work with multiple vendors," he says.
While businesses wrestle with regulations like Sarbanes-Oxley, the Edmonton Police Service has other rules it must follow. "We're in the same boat, really," Clissold says.
In order to access federal police systems, the service must use two-factor authentication and has deployed RSA SecurID to meet that requirement. Also, the service must meet the standards of the Commission on Accreditation for Law Enforcement Agencies.
Some regulations, such as HIPAA, aren't particularly challenging because they're just common sense, says Andy Sutton, network services manager at Texas Health Resources, a nonprofit healthcare system with about 25,000 users.
"Most of [the requirements] are things that a good organization would be doing any way, such as protection of information and preventing unauthorized access to information," he says.
Moreover, vendors are building in accommodations for HIPAA requirements for authorized access to patient information and logging access to that data, he says.
The Bottom Line
Of course, complying with regulations and implementing security technology takes money, but 27 percent of the security professionals surveyed don't expect their overall security budget to increase from this year.
"Ours is pretty flat," Sutton says. "Our budgets are being used primarily for business-related activities. They're going up, but not for security."
Another executive at a large firm also says his security budget won't increase: "It's just hard to make the business case. We try, but it's hard."
For some organizations, budgets aren't just staying the same, they're shrinking. For example, Rutgers is feeling the fallout of a significant statewide shortfall. "We're working under some pretty severe budget constraints," says Oliver.
Yet others are enjoying increases. Twenty-one percent of those surveyed expect their budgets to increase between 10 and 25 percent. Decosimo, for example, is likely to increase its security spending between 10 and 20 percent, Joyce says.
At global truck maker Paccar, next year's security budget will depend on which proposed projects win approval, says Shelley Percich, its technology project manager.
But, she adds, "security is a requirement for all projects that are approved, and additional funding for security requirements is allocated for most all of our projects."
Likewise, Edmonton's Clissold says he doesn't lack funding. He's in the process of building a security infrastructure; two years ago, the service had none to speak of.
"I'm in growth [mode] here, and, because of that, my budget is increasing," he says.
At the North Dakota Credit Union League, the tricky part is figuring out how much money to spend on security, Bartosh says, "because you can sure throw a lot of money out the window, but it won't do anything for you."
What's on Tap
Insider threats and regulatory requirements are driving organizations to spend money on strong authentication and encryption, but companies have a variety of security initiatives planned for next year.
In addition to deploying two-factor authentication, Decosimo expects to spend more next year on physical security. Plans also call for upgrading the company's disaster recovery/business continuity process, Joyce says.
A big project for Texas Health Resources will be implementing single sign-on with biometric authentication as an option for certain computers--a project that had been previously budgeted.
"I'd like to say it's to enhance security, but the main reason is that it's what the doctors want. The perception is that it will speed up signing onto the computer," Sutton says.
Meanwhile, patch management is something Edmonton police will be spending more money on in 2007. Until recently, the service didn't have an automated means of deploying patches.
"We've got an interim means now and we will be spending more to improve that," Clissold says. Beyond specific technologies, the service plans to focus on the convergence of physical and IT security, he adds.
For Rutgers' Oliver, better formalizing of his school's data security policies and procedures is one of his main goals for 2007. Information is critical to a university's research, teaching and service missions, he says.
"You can't have faculty research without maintaining secure and confidential data.... You can't have student services without having information safe," Oliver says.